As an Initial Assumption,it Is Reasonable to Assume That Firms

question 46

Multiple Choice

As an initial assumption,it is reasonable to assume that firms are reluctant to do all of the following EXCEPT:

• A)purchase new fixed assets.
• B)issue new equity.
• C)change dividend policy.
• D)change debt policy.

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Definitions:

Direct Materials Price Variance

Direct materials price variance is the difference between the actual cost of direct materials used in production and the standard cost, indicating how much more or less was spent than expected.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Flexible Budget Sales

Projected sales figures that can adjust based on changes in production levels or market conditions.

Actual Sales

Revenue generated from goods sold or services provided in a particular period, factually recorded.