AICPA CPA-Financial Exam - Topic 2 Question 100 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 100
Topic #: 2

A planned volume variance in the first quarter, which is expected to be absorbed by the end of the fiscal period, ordinarily should be deferred at the end of the first quarter if it is:

AOption A

BOption B

COption C

DOption D

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. Yes - Yes.

Rule: Volume variances that are planned or expected to be absorbed by the end of the year should be deferred at interim whether favorable or unfavorable.

by Joni at Sep 16, 2024, 09:07 AM

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Jaleesa

3 months ago

Option B seems like the right choice here!

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Crista

3 months ago

I think it depends on the specific circumstances, though.

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Davida

3 months ago

Wait, are we sure about that? Sounds a bit off.

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Charisse

4 months ago

Totally agree, that's standard practice!

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Herschel

4 months ago

It's usually deferred if it's expected to be absorbed later.

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Nadine

4 months ago

I’m leaning towards Option B, but I’m a bit confused about how it ties into the fiscal period. I hope I remember the right concepts!

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Felton

4 months ago

I feel like the answer might be related to whether the variance is controllable or not. I need to double-check my notes on that.

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Pamella

4 months ago

This question reminds me of a similar practice one about variances. I remember that deferring variances is usually tied to specific conditions, but I can't recall the exact details.

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Oneida

5 months ago

I think the planned volume variance should be deferred if it’s related to a change in production levels, but I’m not entirely sure.

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Stevie

5 months ago

I'm a little confused by the wording of the question. Let me re-read it a few times and see if I can break down the requirements.

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Eun

5 months ago

Okay, I think I've got this. The key is determining when a planned volume variance should be deferred at the end of the first quarter. Let me double-check the options.

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Jaime

5 months ago

Hmm, I'm a bit unsure about this one. I'll need to carefully review the information provided and think through the different options.

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Gearldine

5 months ago

This question seems straightforward, but I want to make sure I understand the key details before selecting an answer.

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Audra

5 months ago

This looks like a classic cost accounting question. I'm confident I can apply the relevant principles to identify the correct answer.

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Jacquelyne

1 year ago

Option B is the way to go, folks. Deferring a temporary variance is like putting a bandaid on a broken leg, but hey, it's the CPA way!

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Nicholle

1 year ago

True, it's all about balancing short-term and long-term goals in accounting.

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Brittani

1 year ago

But sometimes it's necessary to manage the financials for the fiscal period.

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Quentin

1 year ago

I agree, deferring a planned volume variance is just delaying the inevitable.

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Willetta

1 year ago

Well, if you can't defer a volume variance, what's the point of even planning one? Might as well just wing it and see what happens. *laughs*

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Verdell

1 year ago

Option D is clearly the correct answer. Who cares about deferring a volume variance? Just throw it in the trash and move on!

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Darci

1 year ago

User 4: Just throw it in the trash and move on.

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Sharmaine

1 year ago

Who cares about deferring a volume variance?

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Laura

1 year ago

Option D is the correct answer.

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Olive

1 year ago

I think we should defer it at the end of the first quarter.

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Shawana

1 year ago

I'm not sure, but I think Option C could also be a valid choice.

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Asha

1 year ago

I agree with Alline, because deferring the variance would help in matching expenses with revenues.

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Francesco

1 year ago

I agree, Option B is the way to go. Deferring a temporary variance makes perfect sense, as long as it's absorbed by the end of the fiscal period.

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Sheron

1 year ago

Agreed. Option B is the most logical decision in this situation.

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Allene

1 year ago

I think so too. It's a smart move to ensure that it gets absorbed by the end of the fiscal period.

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Deonna

1 year ago

Option B is definitely the best choice. It's important to defer the planned volume variance in the first quarter.

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Shaunna

1 year ago

Option B seems the most logical choice here. The question mentions a planned volume variance, which implies a temporary timing difference that should be deferred.

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