Managerial Accounting Is Applicable to

question 156

Multiple Choice

Managerial accounting is applicable to

• A) service entities.
• B) manufacturing entities.
• C) not-for-profit entities.
• D) all of these.

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Definitions:

Variable Overhead Efficiency Variance

The difference between actual hours worked to produce an item and the standard hours expected, multiplied by the variable overhead rate.

FOH Volume Variance

The difference between the budgeted fixed overhead and the applied fixed overhead, which is attributed to the difference in actual and budgeted activity levels.

FOH Budget Variance

The difference between the actual and budgeted factory overhead costs over a certain period, indicating under or overspending.

Work in Process

Inventory that includes materials that have begun the production process but are not yet completed products.