The FASB and the IASB Jointly Issued a Comprehensive Principles-Based

question 46

Multiple Choice

The FASB and the IASB jointly issued a comprehensive principles-based revenue recognition Model entitled

• A) Revenue Recognition.
• B) Revenue from Contracts with Customers.
• C) Principles of Revenue Recognition.
• D) Principle-Based Rules of Revenue Recognition.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the amount of overhead allocated to production, based on standard rates.

Variable Overhead Efficiency Variance

A metric that shows the difference between the actual variable overhead costs incurred and the standard variable overhead costs expected for the achieved level of activity.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected costs based on efficient use of resources.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated for the actual production level, often driven by efficiency in using the variable overhead resources.