A Flexible-Budget Variance Is $600 Favorable for Unit-Related Costs

question 89

Multiple Choice

A flexible-budget variance is $600 favorable for unit-related costs. This indicates that costs were ________.

• A) $600 more than the master budget
• B) $600 less than for the planned level of activity
• C) $600 more than standard for the achieved level of activity
• D) $600 less than standard for the achieved level of activity

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Definitions:

Retirement Savings

Funds that individuals set aside and invest to provide income and financial security for retirement.

Insured Bank Account

A bank account protected by a government or private entity against the loss of funds up to a certain amount.

Behavioral Finance

A field of finance that proposes psychology-based theories to explain stock market anomalies and investing behaviors.

Managerial Finance

The branch of finance that focuses on the managerial significance of financial techniques, analysis, and decisions for an organization.