The Difference Between the Actual Volume and the Budgeted Volume,multiplied

question 73

Multiple Choice

The difference between the actual volume and the budgeted volume,multiplied by the fixed overhead rate based on budgeted volume,is the:

• A)fixed overhead spending variance.
• B)fixed overhead price variance.
• C)fixed overhead efficiency variance.
• D)fixed overhead volume variance.

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Definitions:

Strictly Liable

Refers to the legal responsibility of a party for damages or loss, regardless of fault or negligence.

Reasonable Person

A reasonable person is a legal standard used to represent a hypothetical person who exercises average care, skill, and judgment in conduct, serving as a comparative standard in negligence cases.

Law of Torts

A component of civil law dealing with the compensation of victims for harm caused by someone’s negligence or intentional acts.

Standard of Care

The degree of attentiveness, caution, and prudence that a reasonable person in the circumstances would exercise.