An Unfavorable Production-Volume Variance ________

question 126

Multiple Choice

An unfavorable production-volume variance ________.

• A) is not a good measure of a lost production opportunity
• B) indicates that the company had reduced its per unit fixed overhead cost to improve sales
• C) measures the amount of extra fixed costs planned for but not used
• D) takes into account the effect of additional revenues due to maintaining higher prices

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Definitions:

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the short-term liquidity position.

Tax Rate

The rate designated by the state to collect taxes from the profits or income of individuals or firms.

Profit Margin

A measure of profitability calculated as net income divided by revenues.

Professional Office

A professional office is a workspace designed for the use of professionals, such as lawyers, doctors, and accountants, to conduct their business activities.