Is Defined as

question 33

Multiple Choice

is defined as

• A) total variation/explained variation.
• B) explained variation/total variation.
• C) unexplained variation/explained variation.
• D) unexplained variation/total variation.

---

Definitions:

Variance Account Balances

The difference between budgeted and actual figures in accounting, requiring analysis to manage and adjust financial performance.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including labor, material, and overhead expenses.

Fixed Budget

A budget that remains unchanged over the budget period regardless of changes in the level of activity.

Variances

Variances refer to the differences between planned, budgeted, or standard costs and the actual costs incurred, indicating deviations in financial and operational performance.