A Company Is Analyzing Its Month-End Results by Comparing It

question 34

Multiple Choice

A company is analyzing its month-end results by comparing it to both static and flexible budgets. During the previous month, the actual selling price was higher than the expected price as per the static budget. This difference results in a(n) :

• A)favorable flexible budget variance for sales revenues.
• B)favorable sales volume variance for sales revenues.
• C)unfavorable flexible budget variance for sales revenues.
• D)unfavorable sales volume variance for sales revenues.

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Definitions:

Torque Converter Stator

A component within a torque converter that redirects fluid returning from the turbine to assist in providing torque multiplication.

Stall Speed

The lowest speed at which an aircraft can fly to maintain level flight, or in automotive, the RPM at which the torque converter transfers power from the engine to the transmission under full load.

Shift Points

Specific engine speeds at which an automatic transmission changes gears, maximizing performance or fuel efficiency.

Governed Rpm

The maximum engine speed set by a governor device, designed to prevent damage to the engine by limiting its operational speed.