An Unfavorable Volume Variance Means That a Firm Operated at an Activity

question 37

True/False

An unfavorable volume variance means that a firm operated at an activity level that was below the activity level planned for the period.

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Definitions:

Opportunity Costs

The expense incurred from not selecting the next most favorable choice when a decision is taken or preferring one alternative over another.

Efficient

The characteristic of a resource allocation that maximizes the total surplus received by all members of society.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources, technology, etc.), assuming efficient use of resources.

Technological Advance

The introduction and application of new technologies and methods that improve productivity and efficiency.