Which of the Following Overhead Variances Is Not Correctly Paired

question 59

Multiple Choice

Which of the following overhead variances is not correctly paired with a possible explanation for that variance?

• A)Favorable spending variance - incurred a different cost to purchase variable overhead items
• B)Favorable efficiency variance - efficient use of the activity base
• C)Unfavorable efficiency variance - paid more than expected for variable overhead items
• D)Unfavorable spending variance - used variable overhead items inefficiently

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Definitions:

Input Markets

Marketplaces where firms buy resources, goods, and services necessary for producing their own products or services.

Output Markets

Markets where goods and services produced by businesses are sold to households, government entities, and other businesses.

General Equilibrium

A state in which all markets in an economy are in simultaneous equilibrium, taking into account the interactions between different markets.

Consumer Preference

The tendencies of consumers to favor certain products or services over others based on personal tastes, values, and experiences.