In a Standard Cost System, When Production (I

question 29

Multiple Choice

In a standard cost system, when production (i.e., actual output) is greater than the denominator volume level, there will be:

• A) A favorable labor efficiency variance.
• B) An unfavorable total spending variance.
• C) A favorable production-volume variance.
• D) A favorable sales-volume variance.
• E) A favorable overhead budget variance.

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Definitions:

Resources

Assets, materials, or substances that are available and valuable in producing goods or providing services.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit, caused by an economic transaction.

Health Insurance

A form of insurance that covers medical expenses that arise due to illness or injury, typically providing coverage for a variety of healthcare services.

Quantity

The amount or number of a material or immaterial good considered as a unit or an aggregate.