In Phase Two of the Small Business Innovation Research Grant

question 36

Multiple Choice

In Phase Two of the Small Business Innovation Research grant program:

• A) Funds are provided for theoretical research.
• B) No direct funding is provided.
• C) Money is provided to develop prototypes.
• D) Phase one is repeated.

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Definitions:

Standard Costing

An accounting method that uses standard costs for cost control and financial reporting.

Variable Manufacturing Overhead

Manufacturing overhead costs that fluctuate with the level of production activity.

Overhead Rate Variance

The difference between the actual overhead costs incurred and the standard overhead costs assigned to production.

Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (budgeted) cost of those materials.