Merchants Are Held to a Higher Standard of Performance or Duty

question 22

True/False

Merchants are held to a higher standard of performance or duty than are nonmerchants.

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Definitions:

Favorable Cost Variance

A variance that occurs when the actual cost is less than standard cost.

Revenue Price Variance

The difference between the actual revenue received from selling a product and the expected revenue, based on standard pricing.

Revenue Volume Variance

The difference between the planned and actual units sold multiplied by the planned sales price.

Total Revenue Variance

The difference between the actual total revenue earned and the expected total revenue in a period.