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AICPA Exam CPA-Financial Topic 2 Question 100 Discussion

Actual exam question for AICPA's CPA-Financial exam
Question #: 100
Topic #: 2
[All CPA-Financial Questions]

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:

Show Suggested Answer Hide 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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Jacquelyne
9 months 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
8 months ago
True, it's all about balancing short-term and long-term goals in accounting.
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Brittani
9 months ago
But sometimes it's necessary to manage the financials for the fiscal period.
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Quentin
9 months ago
I agree, deferring a planned volume variance is just delaying the inevitable.
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Willetta
10 months 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
10 months 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
8 months ago
User 4: Just throw it in the trash and move on.
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Sharmaine
9 months ago
Who cares about deferring a volume variance?
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Laura
9 months ago
Option D is the correct answer.
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Olive
9 months ago
I think we should defer it at the end of the first quarter.
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Shawana
10 months ago
I'm not sure, but I think Option C could also be a valid choice.
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Asha
10 months ago
I agree with Alline, because deferring the variance would help in matching expenses with revenues.
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Francesco
10 months 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
9 months ago
Agreed. Option B is the most logical decision in this situation.
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Allene
9 months 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
9 months 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
10 months 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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Ligia
9 months ago
Deferring the variance will help in accurately reflecting the financial performance.
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Yuki
9 months ago
Option B aligns with the concept of deferring temporary timing differences.
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Chi
9 months ago
Yes, deferring the planned volume variance makes sense to match expenses with revenues.
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Quentin
10 months ago
I agree, Option B is the most logical choice in this scenario.
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Alline
10 months ago
I think the answer is Option A.
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