The Efficiency Variance Computed on a Three-Variance Approach Is

question 57

Multiple Choice

The efficiency variance computed on a three-variance approach is

• A)equal to the efficiency variance computed on the four-variance approach.
• B)equal to the variable overhead spending variance plus the efficiency variance computed on the four-variance approach.
• C)computed as the difference between applied variable overhead and actual variable overhead.
• D)computed as actual variable overhead minus the flexible budget for variable overhead based on actual hours worked.

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Definitions:

Efficacy

The ability to produce a desired or intended result.

Erikson

A developmental psychologist known for his theory on the psychosocial development of humans, highlighting eight stages that span from infancy to adulthood.

Autonomy

The ability to make a knowledgeable, voluntary choice on one's own.

Shame and Doubt

A stage in Erik Erikson's psychosocial development theory where toddlers learn to exert autonomy, facing challenges of doubt and shame.