A Company Is Analyzing Its Month-End Results by Comparing It

question 135

Multiple Choice

A company is analyzing its month-end results by comparing it to both static and flexible budgets. During the previous month, the actual variable expenses per unit were lower than the expected variable costs per unit as per the static budget. This difference results in a(n) :

• A)favorable flexible budget variance for variable expenses.
• B)favorable sales volume variance for variable expenses.
• C)unfavorable flexible budget variance for variable expenses.
• D)unfavorable sales volume variance for variable expenses.

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Definitions:

Hypotheses

Tentative explanations or propositions made on the basis of limited evidence, serving as a starting point for further investigation.

Critical Component

An essential element or part that is crucial for the functioning or success of a system, process, or mechanism.

Interventions

Actions or processes aimed at altering the current situation, typically to achieve improvements or solve problems.

Deduction

An analytical method where a final judgment is derived from the alignment of several assumptions considered to be accurate.