Which of the following statements about variances is false? If actual direct material price is less than budgeted, the result is an unfavorable materials price variance. If actual sales price is less than budgeted, the result is an unfavorable revenue variance. If actual sales volume is less than budgeted, the result is an unfavorable activity variance. If actual profit is less than budgeted, the result is an unfavorable total profit variance. None of the above is true.

Variance analysis is comparing the actual and standard figures and finding the differences or…

Answered: Which of the following statements about…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 6EA: Use the information provided to answer the questions. All material purchased was used in production....

See similar textbooks

Related questions

Question

Which of the following statements about variances is false?

If actual direct material price is less than budgeted, the result is an unfavorable materials price variance.
If actual sales price is less than budgeted, the result is an unfavorable revenue variance.
If actual sales volume is less than budgeted, the result is an unfavorable activity variance.
If actual profit is less than budgeted, the result is an unfavorable total profit variance.
None of the above is true.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions