Variable Overhead Spending Variances Can Result from Unattainable Variable Allocation

question 35

Multiple Choice

Variable overhead spending variances can result from unattainable variable allocation rates. In turn, those rates may be caused by:
I. Inappropriate allocation bases
II. Poor estimates of total overhead costs
III. Change in estimated life of amortizable assets

• A) I only
• B) I and II only
• C) I and III only
• D) I, II, and III

---

Definitions:

Growth Strategy

A plan of action designed to increase the size and scope of a business, often involving expansion into new markets or increasing market share.

Ideal Size

The optimal dimensions or scale of an object, organization, or system to achieve maximum efficiency or performance.

Corporate Strategy

A comprehensive plan that outlines an organization's overall direction, goals, and approaches to achieve long-term success.

International

Pertaining to relationships between or involving two or more countries.