The Manufacturing Overhead Variance That Is a Measure of Capacity

question 121

Multiple Choice

The manufacturing overhead variance that is a measure of capacity utilization is:

• A) the overhead rate variance.
• B) the overhead efficiency variance.
• C) the overhead budget variance.
• D) the overhead volume variance.

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Definitions:

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business for a specific period.

Disclosure

The act of providing important information to stakeholders, required by regulations to ensure transparency and fairness in financial reporting and corporate actions.

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on a bank statement to ensure accuracy and consistency in the accounts.

Adjusted Balance

Represents the account balance after adjustments such as payments, credits, and interest have been factored in.