An Unfavorable Volume Variance in a Factory Is Generally

question 95

Multiple Choice

An unfavorable volume variance in a factory is generally:

• A)The responsibility of the production manager.
• B)Viewed as an idle capacity loss.
• C)The result of actual volume exceeding normal volume.
• D)Treated as part of the controllable factory overhead variance.

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Definitions:

Zero-Coupon Bonds

Bonds that are issued at a discount to their face value and do not pay periodic interest, but rather pay the face value at maturity.

Yield

The income return on an investment, such as the interest or dividends received, typically expressed as an annual percentage rate based on the investment's cost, its current market value, or its face value.

Face Value

The nominal or dollar value stated on a security or financial instrument, such as a bond or stock.

Real Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing.