An Unfavorable Volume Variance for Variable Expenses Would Indicate That

question 133

Multiple Choice

An unfavorable volume variance for variable expenses would indicate that:

• A)fewer units were actually sold than the company had anticipated.
• B)the expenses of the company were less than what they had planned.
• C)more units were actually sold than the company had originally budgeted to sell.
• D)actual variable expenses were higher than the flexible budget variable expenses.

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Definitions:

Internal Support

Refers to the services and resources within an organization that assist its operations, such as IT support, human resources, and administrative assistance.

Direct Operating Expenses

Costs that can be directly tied to the production or delivery of a company's products or services, excluding overhead or administrative expenses.

Department Manager

A department manager is responsible for overseeing the daily operations, budget, and personnel of a specific department within a company.

Support Department Allocations

The method of distributing the costs of support departments to producing or other service departments that benefit from the activities of the support departments.