An Unfavorable Flexible Budget Variance in Variable Costs Suggests A(n)________

question 147

Multiple Choice

An unfavorable flexible budget variance in variable costs suggests a(n) ________.

• A) increase in sales price per unit
• B) decrease in sales volume
• C) increase in variable cost per unit
• D) decrease in fixed costs

---

Definitions:

Common Shares

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.

Doctrine of Ultra Vires

A legal principle stating that acts done beyond the scope of power of a corporation or governmental entity are invalid or void.

Corporate Law

The body of laws, regulations, and practices that govern the formation and operation of corporations.

Dividend Tax Credit

A tax credit that investors can claim in many jurisdictions for taxes already paid by a corporation on the dividends it distributes to shareholders.