When Actual Variable Cost Per Unit Equals Standard Variable Cost

question 8

Multiple Choice

When actual variable cost per unit equals standard variable cost per unit,the difference between actual and budgeted contribution margin is explained by a combination of which two variances?

• A)The sales-volume variance and the fixed-overhead volume variance.
• B)The sales-volume variance and the fixed-overhead budget variance.
• C)The sales-price variance and the fixed-overhead volume variance.
• D)The sales-price variance and sales-volume variance.
• E)The sales-price variance and fixed-overhead budget variancE.

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Definitions:

Nonexchange Transactions

Transactions where an entity receives value without directly giving or promising equivalent value in exchange.

Reimbursement

Compensation paid to someone for out-of-pocket expenses they have incurred.

Internal Service Fund

A proprietary fund in governmental accounting used to account for the financing of goods or services provided by one department to other departments on a cost-reimbursement basis.

Central Data Processing

The handling and processing of data centrally for efficiency and control, typically within the IT department of an organization.