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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:
Suggested Answer: D
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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.
36 comments · newest first
JA
Jaleesa
10 months ago
Option B seems like the right choice here!
CR
Crista
11 months ago
I think it depends on the specific circumstances, though.
DA
Davida
11 months ago
Wait, are we sure about that? Sounds a bit off.
CH
Charisse
11 months ago
Totally agree, that's standard practice!
HE
Herschel
11 months ago
It's usually deferred if it's expected to be absorbed later.
NA
Nadine
12 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!
FE
Felton
12 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.
PA
Pamella
12 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.
ON
Oneida
1 year 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.
ST
Stevie
1 year 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.
EU
Eun
1 year 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.
JA
Jaime
1 year 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.
GE
Gearldine
1 year ago
This question seems straightforward, but I want to make sure I understand the key details before selecting an answer.
AU
Audra
1 year ago
This looks like a classic cost accounting question. I'm confident I can apply the relevant principles to identify the correct answer.
JA
Jacquelyne
2 years 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!
NI
Nicholle
2 years ago
True, it's all about balancing short-term and long-term goals in accounting.
BR
Brittani
2 years ago
But sometimes it's necessary to manage the financials for the fiscal period.
QU
Quentin
2 years ago
I agree, deferring a planned volume variance is just delaying the inevitable.
WI
Willetta
2 years 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*
VE
Verdell
2 years ago
Option D is clearly the correct answer. Who cares about deferring a volume variance? Just throw it in the trash and move on!
DA
Darci
2 years ago
User 4: Just throw it in the trash and move on.
SH
Sharmaine
2 years ago
Who cares about deferring a volume variance?
LA
Laura
2 years ago
Option D is the correct answer.
OL
Olive
2 years ago
I think we should defer it at the end of the first quarter.
SH
Shawana
2 years ago
I'm not sure, but I think Option C could also be a valid choice.
AS
Asha
2 years ago
I agree with Alline, because deferring the variance would help in matching expenses with revenues.
FR
Francesco
2 years 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.
SH
Sheron
2 years ago
Agreed. Option B is the most logical decision in this situation.
AL
Allene
2 years ago
I think so too. It's a smart move to ensure that it gets absorbed by the end of the fiscal period.
DE
Deonna
2 years ago
Option B is definitely the best choice. It's important to defer the planned volume variance in the first quarter.
SH
Shaunna
2 years 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.
LI
Ligia
2 years ago
Deferring the variance will help in accurately reflecting the financial performance.
YU
Yuki
2 years ago
Option B aligns with the concept of deferring temporary timing differences.
CH
Chi
2 years ago
Yes, deferring the planned volume variance makes sense to match expenses with revenues.
QU
Quentin
2 years ago
I agree, Option B is the most logical choice in this scenario.
AL
Alline
2 years ago
I think the answer is Option A.