Which of the Following Is True Regarding Variances

question 128

Multiple Choice

Which of the following is true regarding variances?

• A) Unfavorable variances occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.
• B) Favorable variances occur whenever actual prices or actual usage of inputs are greater than standard prices or standard usage.
• C) Unfavorable variances are always credits.
• D) Favorable variances are always debits.
• E) None of these.

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Definitions:

Acid Derivatives

Organic compounds derived from acids, where the hydroxyl (OH) group is replaced with other functional groups such as halides, esters, or amides.

Ethyl Benzoate

An organic compound formed by the esterification of benzoic acid with ethanol, known for its sweet, flowery scent.

Methanol

A simple alcohol with the chemical formula CH3OH, used as a solvent, antifreeze, or fuel.

HCl

Hydrochloric acid, a strong acidic compound of hydrogen chloride in water, commonly used in industrial and laboratory settings.