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:

Business Day

A day on which businesses are normally open for operations, excluding weekends and public holidays.

Depositor

An individual or entity that places money into a bank account for safekeeping.

Deposit

A sum of money placed in an account or given as security for a financial transaction or agreement.

Cutoff Hour

A specified deadline by which a certain action must be taken or completed.