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:

Ship's Log Book

The official record book kept on board a ship, documenting its journey, operations, and events.

Parallel Structure

The use of components in sentences that are grammatically the same or similar in their construction, sound, meaning, or meter.

Sentence Variety

The use of different sentence structures to make writing more engaging and to better convey ideas.

Concise Language

The use of clear and straightforward expression in writing or speech, avoiding unnecessary words and complexities.