For Overhead Variances, the Difference Between the Flexible Budget Amounts

question 35

Multiple Choice

For overhead variances, the difference between the flexible budget amounts and actual costs incurred is called the:

• A) Budget variance
• B) Volume variance
• C) Favourable variance
• D) Quantity variance

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Definitions:

For AGI Deduction

For AGI deductions, also known as above-the-line deductions, reduce gross income to arrive at adjusted gross income and can include expenses such as certain business expenses, alimony payments, and contributions to retirement accounts.

Material Amount

A sum of money that is large enough to influence decisions or the perception of a company's financial performance.

Sole Proprietorship

A business structure where a single individual owns and operates the business, bearing full responsibility for its debts and obligations.

Hybrid Method

An accounting approach that combines elements of both the cash basis and accrual basis methods for financial reporting.