When the Actual Output Is More Than Expected and the Volume

question 138

Multiple Choice

When the actual output is more than expected and the volume is unusually high then the production volume variance is

• A)unfavourable and should be prorated to work-in-process inventory, finished goods inventory, and cost of goods sold.
• B)unfavourable and should be charged to cost of goods sold.
• C)favourable and should be offset against cost of goods sold.
• D)unfavourable and should be applied to inventory.
• E)favourable and should be applied to inventory.

---

Definitions:

Wholesale Price

The cost of goods sold in large quantities primarily to retailers or other merchants, rather than directly to consumers.

Laws of Nature

Fundamental principles or forces that govern the physical universe, including laws of physics, chemistry, and biology.

Juriscience

The scientific study of law and legal principles, often employing methods from various disciplines to understand legal systems.

Diamond v. Chakrabarty

A landmark U.S. Supreme Court decision in 1980 that held genetically modified organisms can be patented, expanding the scope of what is considered patentable material.