The Two Variances for Fixed Overhead Are

question 35

Multiple Choice

The two variances for fixed overhead are

• A)spending and efficiency variances.
• B)efficiency and volume variances.
• C)spending and volume variances.
• D)budget and efficiency variances.

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Definitions:

Capital

Assets used for the production of goods and services, such as buildings, machinery, and equipment.

Optimal Ratio

The most efficient or favorable balance or proportion among elements or variables in a given context or system.

Wage Rate

The amount of compensation paid for labor services per unit of time (e.g., hour, day, or month).

Rental Rate

The price paid for the temporary use of a good, service, or property expressed typically as a daily, monthly, or yearly rate.