Management Can Get Further Insight in the Reason of Flexible-Budget

question 46

Multiple Choice

Management can get further insight in the reason of flexible-budget variance for direct-cost input variances when they subdivide them into ________ and spending variances.

• A)defect rates
• B)post-sales affect flexible-budget variance for direct-cost input
• C)revenue variances
• D)efficiency variances
• E)gross margin percentage

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Definitions:

Price-earnings Ratio

A valuation metric for assessing a company's current share price relative to its per-share earnings.

Stock Market

A public market for the trading of company stock and derivatives at agreed prices.

Future Earnings

Projected profits or income a company expects to generate in future periods.

Prior Period Adjustment

Corrections of errors in previously published financial statements not related to the current period.