The Unfavorable Volume Variance May Be Due to All of the Following

question 104

Multiple Choice

The unfavorable volume variance may be due to all of the following factors except

• A) failure to maintain an even flow of work
• B) machine breakdowns
• C) unexpected increases in the cost of utilities
• D) failure to obtain enough sales orders

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Definitions:

Break-even Point

The financial point at which total revenue equals total costs, resulting in zero net profit or loss.

Break-even Analysis

A financial calculation to determine the point at which revenue received equals the costs associated with receiving the revenue.

Cost-volume-profit Analysis

A financial analysis tool that helps in determining the effect of changes in costs and volume on a company's profit.

PERT

An acronym for Program Evaluation and Review Technique, a statistical tool used in project management, designed to analyze and represent the tasks involved in completing a given project.