If a Company Incurs a Lot of Different Variable Overhead

question 148

Multiple Choice

If a company incurs a lot of different variable overhead costs and the activity base is only slightly related to their consumption, which of the following statements is true?

• A)The variable overhead efficiency variance will be meaningless.
• B)The variable overhead spending variance will be meaningless.
• C)Both the variable overhead efficiency variance and the variable overhead spending variance will be meaningless.
• D)The variable overhead spending variance will be extremely informative.

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Definitions:

Bossy

Tending to give people orders in a domineering manner, often excessively and without proper authority.

Controlling

Exerting power or influence over others in a way that limits their autonomy or freedom.

High Neuroticism

An elevated level of the personality trait involving more frequent or intense experiences of negative emotions such as anxiety and depression.

Health Problems

Physical or mental conditions that affect an individual's well-being, ranging from minor illnesses to serious diseases.