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

question 69

Multiple Choice

A company is analyzing its month-end results by comparing it to both static and flexible budgets.During the month,the actual variable costs 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 costs
• B) favorable sales volume variance for variable costs
• C) unfavorable flexible budget variance for variable costs
• D) unfavorable sales volume variance for variable costs

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Definitions:

Debit Postings

Entries made on the left side of a ledger account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Account Balance

An account balance refers to the amount of money held in a financial repository, typically a bank account, at any given moment.

Painting Equipment

Assets used in the operation of a painting business or for painting activities, classified as long-term if they provide benefits over multiple periods.

Accounts Payable

The balance of money owed to suppliers for goods or services purchased on credit and not yet paid.