The Two Variances for Variable Overhead Are

question 202

Multiple Choice

The two variances for variable overhead are

• A) spending and efficiency variances.
• B) spending and budget variances.
• C) budget and volume variances.
• D) spending and volume variances.
• E) volume and efficiency variances.

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Definitions:

Price Elasticity

A measure of how much the demand or supply of a product changes in response to a price change.

Cournot Equilibrium

A model of market competition in which firms choose their output levels simultaneously and independently to maximize profit with the assumption of no further entry by other firms.

Marginal Cost

Marginal cost denotes the change in the total expense incurred by a firm when its output is increased by a single unit.

Major League Baseball

A professional baseball organization consisting of teams in the United States and Canada, representing the sport's highest level of play.