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

question 172

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 sales volume was lower than the expected sales volume as per the static budget.This difference results in an unfavorable ________.

• A) flexible budget variance for variable costs
• B) sales volume variance for variable costs
• C) flexible budget variance for sales revenue
• D) sales volume variance for sales revenue

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Definitions:

Lower Of Cost

A principle requiring inventory to be recorded at the lower of its original cost or current market value, ensuring valuation is not overstated.