The Difference Between the Actual Cost of Variable Overhead Items

question 14

Multiple Choice

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 is the

• A)the variable overhead flexible budget variance.
• B)the manufacturing overhead expense variance.
• C)the variable overhead efficiency variance.
• D)the variable overhead spending variance.

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Definitions:

Stockholders' Equity

The portion of a company's assets that remains following the deduction of all liabilities, signifying the ownership interest of its shareholders.

Revenues

The total income generated from normal business operations and other activities over a period of time.

Expenses

Outflows or utilizing of assets, incurring liabilities resulting from operating activities, typically categorized into cost of goods sold, operating expenses, and non-operating expenses.

Chart Of Accounts

A systematic listing of all account titles and numbers being used by an organization to track its financial transactions and to prepare financial statements.