The Difference Between the Actual Variable Overhead and the Variable

question 117

Short Answer

The difference between the actual variable overhead and the variable overhead budgeted for the actual level of the cost-driver activity

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Definitions:

Merchandise

Goods brought into a store for resale to customers.

Purchase Discounts

Reductions in price given by a supplier to a buyer for early payment within a specified period.

Purchase Discounts Lost

The additional expense a company incurs when it fails to take advantage of discounts offered by suppliers for early payment.

Voucher Register

A voucher register is a record keeping system where vouchers are indexed and stored, detailing the payment of a transaction.