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

question 135

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 variable expenses per unit were lower than the expected variable costs per unit as per the static budget. This difference results in a(n) :

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

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Definitions:

Convex

A shape that curves outward, or a mathematical concept that implies a set or function that holds certain properties related to this outward curvature.

Concave

A shape or curve that curves inward, resembling the inner surface of a sphere or circle, often used in mathematics and economics.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, benefits, and other income sources.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, reflecting their preferences for combinations of goods.