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:

Leisure Time

Time available for ease and relaxation, where no work-related duties are expected, allowing for personal preferences in activities.

Marginal Productivity

The additional output resulting from the use of one more unit of a factor of production, holding other factors constant.

Labor-saving

Technologies or methods that decrease the amount of work required to produce goods or services, often leading to increased efficiency.

Marginal Productivity

The additional output that results from using one more unit of a factor, holding all other inputs constant.