The Total Operating-Income Variance for Any Period

question 81

Multiple Choice

The total operating-income variance for any period:

• A) Is unaffected by variances between actual and budgeted sales volume.
• B) Can be decomposed into a total flexible-budget variance and a sales-volume variance.
• C) Can be decomposed into a total flexible-budget variance and a sales price variance.
• D) Is equal to the sum of selling and administrative expense variances plus the total sales-volume variance for the period.
• E) Equals the sum of the total flexible-budget variance plus the sales-mix variance for the period.

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Definitions:

Decision-Making Process

A series of steps a person or organization goes through to weigh the pros and cons of different options and choose the best course of action.

Day-To-Day Activities

The regular, everyday tasks or operations that are essential to the functioning of a business or individual.

Unlimited Liability

A legal structure in which the business owners are personally responsible for all of the company's debts and obligations.