Overhead Cost Variance Is

question 22

Multiple Choice

Overhead cost variance is:

• A) The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level.
• B) The difference between the actual overhead incurred during a period and the standard overhead applied.
• C) The difference between actual and budgeted cost caused by the difference between the actual price per unit and the budgeted price per unit.
• D) The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform a specific service.
• E) The difference between the total overhead cost that would have been expected if the actual operating volume had been accurately predicted and the amount of overhead cost that was allocated to products using the standard overhead rate.

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Definitions:

Statistical Inference

The process of using data analysis to deduce properties of an underlying distribution of probability.

Huge Data

A colloquial term likely referring to "Big Data," which describes extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations.

Big Data

Large volumes of data - both structured and unstructured - that inundate a business on a day-to-day basis.

Data-Processing Techniques

Methods and procedures used for transforming raw data into meaningful information through various manipulations such as coding, sorting, and summarizing.