The Unfavorable Volume Variance May Be Due to All of the Following

question 104

Multiple Choice

The unfavorable volume variance may be due to all of the following factors except

• A) failure to maintain an even flow of work
• B) machine breakdowns
• C) unexpected increases in the cost of utilities
• D) failure to obtain enough sales orders

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Definitions:

Accounts Payable

The amount of money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.

Investing Activity

Activities related to the purchase or sale of long-term assets and investments, a component of a company's cash flow statement.

Financing Activity

Transactions involved in sourcing capital for the company operations and investments, which may include issuing bonds, obtaining loans, or repaying debt.

Common Stock

A type of security that represents ownership in a corporation, with holders usually having voting rights and potentially receiving dividends.