In a Standard Cost System,the Volume Variance Will Be Unfavorable

question 92

Multiple Choice

In a standard cost system,the volume variance will be unfavorable when:

• A)actual hours are greater than the denominator hours.
• B)the standard hours allowed for the output of the period are less than the denominator hours.
• C)the standard hours allowed for the output of the period are greater than the actual hours incurred.
• D)actual hours are less than the denominator hours.

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Definitions:

Buying Power

Buying power refers to the value of currency to purchase goods and services, influenced by factors like inflation and the strength of the currency.

CPI

The Consumer Price Index represents a measurement that calculates the aggregate weighted cost of a selection of consumer goods and services, including items like food, medical services, and transportation.

Salary

A fixed regular payment, typically given on a monthly or biweekly basis, made by an employer to an employee, especially a professional or white-collar worker.

Chalk

Chalk is a soft, white, porous sedimentary carbonate rock, often used for writing on blackboards or in industries like construction and art.