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    Cost Accounting Study Set 1
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    Exam 8: Flexible Budgets, Variances, and Management Control: II
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    A Favourable Production-Volume Variance Indicates That the Company
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A Favourable Production-Volume Variance Indicates That the Company

Question 108

Question 108

Multiple Choice

A favourable production-volume variance indicates that the company


A) has good management.
B) produced more than it has sold.
C) has a total economic gain from using excess capacity.
D) should increase capacity.
E) has allocated more fixed overhead costs than budgeted.

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