An Unfavorable Flexible-Budget Variance for Variable Costs May Be the Result

question 60

Multiple Choice

An unfavorable flexible-budget variance for variable costs may be the result of ________.

• A) using more input quantities than were budgeted
• B) paying lower prices for inputs than were budgeted
• C) selling output at a higher selling price than budgeted
• D) selling less quantity compared to the budgeted

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Definitions:

Illusion of Unanimity

The misconception within a group that everyone agrees on a decision or a situation, even if this is not the case.

Illusion of Invulnerability

describes a cognitive bias in group decision-making processes where members collectively develop an overconfidence in their decisions and underestimate risks.

Devil's Advocate

The act of taking a position or argument one does not necessarily agree with for the sake of debate or to explore the thought process behind opposing viewpoints.

Groupthink

A psychological phenomenon where the desire for harmony and conformity in a group leads to irrational or dysfunctional decision-making outcomes.