The Variable Overhead Efficiency Variance Is Favourable If the Actual

question 59

True/False

The variable overhead efficiency variance is favourable if the actual volume of the allocation base is less than expected given actual production levels.

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Definitions:

Process Cost System

A method in accounting for assigning costs to like products, which are produced en masse and in a continual manner.

Computer Chips

Small semiconductor devices made of silicon or other materials that contain integrated circuits used in the manufacturing of electronic devices.

Process Costing

A costing method used where similar products are produced in a continuous process, assigning average costs to each unit.

Job Order Costing

An accounting methodology used to track the expenses of creating a specific product or providing specific services and assign those costs to the products or services.