When a Comparison of Static and Flexible Budgets Shows an Unfavorable

question 103

True/False

When a comparison of static and flexible budgets shows an unfavorable sales revenue volume variance, the variable cost volume variance will be favorable.

---

Definitions:

Histogram

A graphical representation of data using bars of different heights to show the distribution of values over a set range.

Correlation

A statistical measure that identifies the extent to which two variables fluctuate together, indicating a possible relationship between them.

PDCA Cycle

A four-step management method used for the control and continuous improvement of processes and products, consisting of Plan, Do, Check, Act.

Experimentation

The process of conducting trials to explore hypotheses or understand phenomena through controlled variation of conditions.