Which of the Following Statements Is True of Cost Variances

question 129

Multiple Choice

Which of the following statements is true of cost variances and 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 actual results.

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Definitions:

Dividend Liability

Refers to the amount a company owes to its shareholders after the board of directors declares a dividend but before the company has actually paid it.

Date of Declaration

The specific date on which a company's board of directors announces its intention to pay a dividend to shareholders.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given year, and must be paid out before common stock dividends.

Par Common Stock

The nominal or face value assigned to common stock by the issuing company.