The Difference Between Actual Overhead Costs and Overhead Costs Applied

question 64

Multiple Choice

The difference between actual overhead costs and overhead costs applied is the

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

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Definitions:

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account; used in capital budgeting to analyze the profitability of an investment or project.

Forward Exchange Rate

The exchange rate at which two parties agree to exchange currencies at a future date.

Forward Trade

A non-standardized contract between two parties to buy or sell an asset at a specified future date for a price that is agreed upon today.

Spot Exchange Rate

The current price for exchanging one currency for another for immediate delivery, reflecting the value of one currency in terms of another at a specific moment in time.