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

question 34

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 selling price was higher than the expected price as per the static budget. This difference results in a(n) :

• 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:

Hybrid Costing

A costing system that combines elements of both job costing and process costing, applicable in manufacturing environments producing similar products in batches.

Front Office

The part of a business where customer interaction and the administrative work of a business are conducted.

Equipment Input

The machinery and tools used in the production or service process.

Chargeout Rate

The price per hour that a firm or individual charges for services, often used in consultancy and project-based work environments.