Variances Indicate

question 77

Multiple Choice

Variances indicate

• A) that actual performance is not going according to plan.
• B) the cause of the variance.
• C) who is responsible for the variance.
• D) when the variance should be investigated.
• E) none of these.

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Definitions:

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the level of production, such as salaries, rent, and insurance.

Master Budget

A comprehensive financial plan made up of several individual budgets that represent the company's operations and financial goals for a specific period.

Product

An item or service created through a process of manufacturing or production, intended for sale or use by consumers.

Production Costs

Expenses directly associated with the manufacturing of goods, including materials, labor, and factory overhead.