Which of the Following Is Not a Reason Variable Overhead

question 163

Multiple Choice

Which of the following is not a reason variable overhead costs might differ from the flexible budget costs?

• A)Executives' salaries may increase or decrease.
• B)The prices paid to acquire variable overhead items can increase or decrease.
• C)Variable overhead items can be used more or less efficiently than planned.
• D)When the company is less efficient with respect to that production activity, variable overhead is used more or less efficiently.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Loss on Sale

A financial outcome in which the proceeds from the sale of an asset are less than its carrying value on the books.

Stock Investment

The purchase of shares in a company to gain a financial return in the form of dividends or appreciation in the share price.

Equity Method Investments-Jay

An accounting technique used to record investments in other companies, where the investment is significant but less than controlling, adjusting the value to account for the investor's share of the earnings or losses.