Which One of the Following Describes the Total Overhead Variance

question 239

Multiple Choice

Which one of the following describes the total overhead variance?

• A) The difference between what was actually incurred and the flexible budget amount
• B) The difference between what was actually incurred and overhead applied
• C) The difference between the overhead applied and the flexible budget amount
• D) The difference between what was actually incurred and the total production budget

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Definitions:

Variance

A statistical measure of the distribution of data points in a data set, indicating how far each data point is from the mean.

Downside Risk

The potential loss in value of an investment, indicating the estimate of the extent to which an asset or security could decrease in value.

Conversion Premium

The extra amount an investor pays to convert a convertible security into a specified number of shares of common stock, above its current market value.

Conversion Price

The predetermined price at which convertible securities can be exchanged for a specified number of common shares.