A Total Variable Cost Variance (Such as for Direct Materials)can

question 96

Multiple Choice

A total variable cost variance (such as for direct materials) can be broken down into separate variances that evaluate:

• A)Price and efficiency.
• B)Units and cost.
• C)Volume and productivity.
• D)Sales volume versus sales mix.
• E)Efforts and results.

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Definitions:

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to the accounts in the general ledger.

Transaction Recording Process

The methodical process of recording financial transactions in the books of accounts to ensure accurate financial reporting.

Journal

A chronological record of all transactions made by a company, used as the primary source of information for the financial statements.

Ledger

A comprehensive collection of a company's accounts where transactions are recorded, typically categorized into assets, liabilities, equity, revenues, and expenses.