An Unfavorable Volume Variance May Be Due to a Failure

question 130

True/False

An unfavorable volume variance may be due to a failure of supervisors to maintain an even flow of work.

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Definitions:

Prepaid Pension Costs

Expenses paid in advance for pension benefits, typically recorded as an asset on the balance sheet.

Unrecognized Net Loss

A loss that has occurred but has not been reported in the financial statements because it has not yet been realized through a transaction.

Projected Benefit Obligation

A measurement of the present value of future pension benefits owed to employees, based on factors like salary history and years of service.

Plan Assets

Resources set aside by a company in a dedicated fund to meet future pension benefits or other long-term employee benefits.