The Capacity Variance Is Composed of the Unused Capacity Variance

question 138

Multiple Choice

The capacity variance is composed of the unused capacity variance and

• A)the activity volume variance.
• B)the used capacity variance.
• C)the activity benchmark.
• D)the value-added standard.

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Definitions:

Adjusted Trial Balance

An adjusted trial balance is a list of all the accounts of a company, including any adjustments, showing the final balances to be used for financial statements.

Financial Reports

Documents that provide an overview of a business's financial condition in both short and long term.

Asset

Any resource owned by a business or an individual that is expected to provide future benefits.

Liabilities

Financial obligations or debts that a company or individual owes to others, which must be satisfied in the future.