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:

Tax Advantages

Financial benefits derived from tax laws, which reduce the tax liability of an individual or business.

Limited-Liability

This is a legal status that prevents a company's shareholders from being personally liable for the company's debts or liabilities beyond their investment in the company.

Articles of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.

State

A political entity with a centralized government that has sovereignty over a geographic area.