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.

---

Definitions:

Equipment

Tangible assets used in the operation of a business to produce goods or provide services.

Net Cash

Net cash typically represents the sum of cash and cash equivalents minus outstanding liabilities, indicating the liquid assets a company has on hand after accounting for its immediate obligations.

Financing Activities

Transactions involving long-term liabilities, shareholders' equity, and changes in short-term borrowings that a company undertakes to fund its operations and expansions.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.