The Difference Between Fixed Overhead Budgeted and Overhead Applied Is

question 54

Multiple Choice

The difference between fixed overhead budgeted and overhead applied is the

• A)budget variance.
• B)spending variance.
• C)total overhead variance.
• D)volume variance.

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Definitions:

Credit

A mutual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date with terms specified.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership portion of a company's assets.

Asset

Resources owned or controlled by a company, expected to provide future economic value or benefits.

Owner's Capital

The amount of money and other assets owned by a business's owner after all liabilities have been deducted; also known as owner's equity.