Which of the Following Statements Is TRUE About Price Variances

question 50

Multiple Choice

Which of the following statements is TRUE about price variances and quantity (or efficiency) variances?

• A) They pertain to the difference between the static budget and actual results.
• B) They pertain to the difference between the flexible budget and actual results.
• C) They pertain to the difference between the flexible budget and the static budget.
• D) They pertain to the difference between the static budget and the previous year's actuals.

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Definitions:

Bargain

An agreement between two or more parties as to what each party will do for the other, often involving negotiation on terms and conditions.

Gradual Buildup

The slow accumulation or increase of something over time.

Foot-in-the-door Technique

A persuasion strategy that involves getting a person to agree to a small request as a precursor to making a larger request.

Bait-and-switch Technique

A deceptive marketing strategy where a seller lures customers by advertising a product or service at a low price, then reveals that the specific item is no longer available, offering a more expensive alternative instead.