In General, High Costs Per Thousand (CPM) Are Found in Areas

question 25

Multiple Choice

In general, high costs per thousand (CPM) are found in areas that have:

• A)a high per capita GNP
• B)a low per capita GNP
• C)a large gap between income levels
• D)a large population
• E)none of the above

---

Definitions:

Variable Overhead Rate Variance

The difference between actual variable overhead costs incurred and the standard variable overhead costs expected for the actual production level.

Fixed Manufacturing Overhead Budget Variance

The discrepancy between the budgeted fixed overhead costs and the actual fixed overhead incurred during production.

Fixed Manufacturing Overhead Volume Variance

The difference between the budgeted and actually applied fixed manufacturing overhead, based on standard costs for a given period.

Fixed Overhead Budget Variance

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