AICPA Exam CPA-Financial 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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Jacquelyne

2 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

1 months ago

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

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Brittani

1 months ago

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

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Quentin

2 months ago

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

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Willetta

2 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

2 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

1 months ago

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

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Sharmaine

1 months ago

Who cares about deferring a volume variance?

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Laura

1 months ago

Option D is the correct answer.

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Olive

2 months ago

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

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Shawana

2 months ago

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

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Asha

2 months ago

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

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Francesco

2 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

1 months ago

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

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Allene

2 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

2 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

3 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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