The Company Better Place

question 53

Multiple Choice

The company Better Place

• A) is building a network of 250,000 electric car recharging stations.
• B) is donating $2.4 billion in funding for electric car manufacturing.
• C) is developing electric plug-in vehicles.
• D) recently unveiled the country's first all-electric vehicle for the mass market.
• E) in 2009 committed to spend $565 million over 10 years to replace its 7,100 passenger cars with 8,000 hybrid-electric and natural gas vans to perform its installation and repair activities.

---

Definitions:

Direct Materials Purchases Variance

Direct materials purchases variance analyzes the difference between the actual cost of materials purchased and the budgeted cost, impacting budgeting and cost control.

Variable Overhead

Those overhead costs that vary in total directly and proportionately with changes in production or activity level.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on a standard rate.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected (budgeted) cost of these materials.