Which of the Following Statements May Be True If Actual

question 161

Multiple Choice

Which of the following statements may be true if actual units produced exceed the budgeted units to be produced?

• A)Production volume variance is expected to be unfavorable.
• B)Overhead flexible budget variance is expected to be favorable.
• C)Fixed overhead volume variance is expected to be favorable.
• D)Overhead flexible budget variance is expected to be unfavorable.

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Definitions:

Trading Securities

Financial instruments that are bought and sold for the purpose of generating profits on short-term fluctuations in price.

Held-To-Maturity

Held-to-maturity describes investment assets that a firm plans and is capable of retaining until they reach their due date.

Security Categories

Security categories classify financial instruments based on their characteristics, such as equities, debts, derivatives, or hybrid instruments.

Carrying Value

The net amount at which an asset or liability is valued on the balance sheet, taking into account factors such as depreciation, amortization, and impairment.