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.

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Definitions:

Negotiator

A negotiator is someone who is involved in discussions aimed at reaching an agreement or resolving a dispute, possessing skills in communication, persuasion, and strategy.

Trust

A firm belief in the reliability, truth, ability, or strength of someone or something.

Enlightened Self-Interest

A philosophy where individuals act in ways that benefit others because they understand that these actions are ultimately in their own best interest.

Block

To obstruct or prevent action or progress in a negotiation or any process.