An Unfavorable Flexible-Budget Variance for Variable Costs May Be the Result

question 31

Multiple Choice

An unfavorable flexible-budget variance for variable costs may be the result of:

• A)using more input quantities than were budgeted
• B)paying higher prices for inputs than were budgeted
• C)selling output at a higher selling price than budgeted
• D)Both A and B are correct.

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Definitions:

Workplace

Refers to any location, environment, or setting where individuals engage in work-related activities or occupations.

Equilibrium Wage

is the wage rate at which the supply of labor equals the demand for labor in the labor market.

Demand for Labor

The total amount of labor that employers want to hire at various wage rates, during a certain period.

Supply and Demand

The fundamental economic model that explains how the market price of a product is determined by the quantity of the product that producers are willing to supply and the quantity that consumers are willing to purchase.