Variance Analysis for Overhead Normally Focuses on

question 39

Multiple Choice

Variance analysis for overhead normally focuses on

• A)efficiency variances for machinery and indirect production costs.
• B)volume variances for fixed overhead costs.
• C)the controllable variance as a lump-sum amount.
• D)the difference between budgeted and applied variable overhead.

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Definitions:

Equity Transaction

Transactions that affect the ownership interest of shareholders in a company, including issues, buybacks, and sale of shares.

Incremental Costs

Costs directly associated with the production of additional units of goods or services.

Net Of Tax

The amount remaining after the effect of taxes has been accounted for.

Contingent Asset

A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.