When the Actual Output Is More Than Expected and the Volume

question 138

Multiple Choice

When the actual output is more than expected and the volume is unusually high then the production volume variance is

• A)unfavourable and should be prorated to work-in-process inventory, finished goods inventory, and cost of goods sold.
• B)unfavourable and should be charged to cost of goods sold.
• C)favourable and should be offset against cost of goods sold.
• D)unfavourable and should be applied to inventory.
• E)favourable and should be applied to inventory.

---

Definitions:

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce.

Legal And Political Systems

The comprehensive structure within which laws are created, interpreted, and enforced, and how government decision-making occurs, influencing the behavior of individuals and organizations.

Asia Pacific Economic Cooperation

A forum that links 21 countries to promote free trade and investment in the Pacific region.

Economic Alliance

A partnership between countries or organizations to pursue shared economic goals, often involving trade agreements or collaborative projects.