A Company Is Analyzing Month-End Results Compared to Both Static

question 77

Multiple Choice

A company is analyzing month-end results compared to both static and flexible budgets. This month the actual selling price was higher than projected in the static budget. What kind of variance would that produce?

• A) Favorable flexible budget variance for sales revenues
• B) Favorable sales volume variance for sales revenues
• C) Unfavorable flexible budget variance for sales revenues
• D) Unfavorable sales volume variance for sales revenues

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Definitions:

Binomial Probability

The probability of achieving a specific number of successes in a fixed number of independent trials, where each trial has two possible outcomes.

Normal Curve

A bell-shaped curve depicting the distribution of many types of data; most scores are near the mean, with fewer scores toward the extremes.

Normal Distribution

In this probability distribution, symmetry is observed around the mean, illustrating that nearer data points are more common than distant ones.

Sample Size

The number of observations or data points collected in a sample from a larger population.