If a Company Was Concerned with Controlling Expenditures on Overhead

question 53

Multiple Choice

If a company was concerned with controlling expenditures on overhead items, which variance would be useful?

• A)fixed overhead volume variance
• B)variable overhead efficiency variance
• C)variable overhead spending variance
• D)both b and c

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Definitions:

Sole Proprietorship

A business structure in which a single individual both owns and operates the business, bearing unlimited liability for its debts.

Major Shareholder

An individual or entity that owns a significant percentage of a company's shares, exerting influence or control over its management.

Vicariously Liable

Legal principle where one party is held responsible for the actions or omissions of another party.

Joint

Pertaining to rights, obligations, or ownership shared between two or more parties.