An S-Curve CANNOT Be Used To

question 18

Multiple Choice

An S-curve CANNOT be used to:

• A)determine whether the project is ahead of budget.
• B)determine when the project is behind budget.
• C)determine the cause of positive variance.
• D)determine whether there is negative variance.

---

Definitions:

Variable Manufacturing Overhead Standards

Pre-set rates used to allocate variable overhead costs to individual units of production based on expected usage criteria, such as labor hours.

Variable Overhead Efficiency Variance

A measure in cost accounting showing the difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the actual hours worked.

Variable Overhead Standards

Predetermined rates used to control and budget for the variable portion of manufacturing overhead costs, adjusting with production volumes.

Direct Labor-hours

The cumulative hours spent by workers who are primarily engaged in creating products or providing services.