The Variable Overhead Spending Variance

question 155

Multiple Choice

The variable overhead spending variance

• A)is the difference between the actual cost of variable overhead items and the amount of variable overhead cost that is expected to be incurred at the actual level of activity base experienced.
• B)relates to the efficient use of the activity base rather than the efficient use of the variable overhead item.
• C)captures whether the company has paid more or less for variable overhead items.
• D)is unfavorable when more variable overhead items are used than allowed at the level of activity achieved.

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Definitions:

Hypothesis

An initial explanation offered for a phenomenon that serves as a basis for ongoing exploration.

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Pessimistic Thinking

A bias towards interpreting events in their most pessimistic light or foreseeing the gloomiest possible outcomes, marked by a shortfall in confidence or optimism about the forthcoming.

False News

Misinformation or fabricated information presented as news, often with the intent to deceive.