A Favorable Flexible Budget Materials Variance May Indicate That the Price

question 83

True/False

A favorable flexible budget materials variance may indicate that the price per unit of materials was lower than expected and that less material was used than expected,or either of these.

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Definitions:

Utility Function

A mathematical representation in economics that quantifies the satisfaction or happiness an individual gains from consuming various bundles of goods and services.

Income Effect

Shifts in income for individuals or within the economy and their consequences on the volume of goods or services demanded.

Utility Function

A mathematical representation of a consumer's preference, showing the level of satisfaction or happiness derived from consuming various bundles of goods and services.

Income Effect

The impact of income changes on an individual or economic level on the demand for various products or services.