Which of the Following Is an Important Component of Relevance

question 97

Multiple Choice

Which of the following is an important component of relevance?

• A) materiality
• B) verifiability
• C) consistency
• D) comparability

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard cost allocated, indicating inefficiencies or cost control issues.

Favorable

A term used in accounting to describe a situation where actual costs are less than the budgeted or standard costs.

Unfavorable

A term used in variance analysis to describe a variance that leads to a decrease in profit compared to budgeted or standard costs.

Fixed Manufacturing Overhead

The portion of total manufacturing overhead costs that does not vary with the level of production or output.