Most States Have Shifted Away from an Equally Weighted Three-Factor

question 132

True/False

Most states have shifted away from an equally weighted three-factor to a heavily weighted sales apportionment formula.

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Definitions:

Sales Volumes

The quantity or number of products sold or services rendered in a particular period of time.

Variable Overhead Cost Variance

The difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on the actual level of activity.

Fixed Overhead Cost Variance

The difference between the actual fixed overhead costs incurred and the expected (or budgeted) fixed overhead costs.

Variable Overhead Efficiency Variance

A calculation that shows the cost impact of the difference between the actual and expected efficiency in using variable overhead resources in production.