Washington Inc

question 19

Multiple Choice

Washington Inc. has an unfavorable fixed overhead spending variance. Which of the following would be the most likely reason for this variance?

• A) More units were actually produced than predicted.
• B) Fewer units were actually produced than predicted.
• C) Actual fixed overhead was more than predicted.
• D) Actual fixed overhead was less than predicted.

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Definitions:

Elastic

Describes a situation in economics where the demand or supply for a product changes significantly when its price changes.

Inelastic

Refers to a market for a product or service that is price insensitive; that is, relatively small changes in price will not generate large changes in the quantity demanded.

Products

Items or services offered by a business to customers, which can include physical goods, services, and digital products.

Perceptions of Value

How consumers view the worth of a product or service based on its perceived benefits versus the cost, which influences their purchasing decisions.