The Variable Overhead Variance Is Separated into Which of the Following

question 108

Multiple Choice

The variable overhead variance is separated into which of the following components?

• A)Volume variance and efficiency variance
• B)Quantity variance and efficiency variance
• C)Spending variance and efficiency variance
• D)Spending variance and volume variance

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services that have been delivered or used but not yet paid for.

Short-Term Liability

Financial obligations due within a year, such as accounts payable, short-term loans, and other similar debts.

Working Capital

Current assets minus current liabilities, indicating the liquidity available for a company's day-to-day operations.

Current Ratio

A measurement of a corporation's capability to meet obligations due in less than a year by evaluating its short-term liquid assets.