Answer the Following Questions Using the Information Below

question 144

Multiple Choice

Answer the following questions using the information below:
These questions refer to flexible-budget variance formulas with the following descriptions for the variables: A = Actual; B = Budgeted; P = Price; Q = Quantity.
-The best label for the formula [(AP) (AQ) - (BP) (BQ) ] is the:

• A)efficiency variance.
• B)price variance
• C)total flexible-budget variance
• D)spending variance

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Definitions:

Exports

Items or services manufactured in one nation and marketed to purchasers in another.

World Price

The global market price of a product or service, determined by worldwide conditions of supply and demand.

Importer or Exporter

A person or company that brings goods into (importer) or sells goods to other countries (exporter) as part of international trade.

Equilibrium Price

The cost at which the amount of a product or service sought after is equal to the amount available, leading to equilibrium in the market.