When Fixed Overhead Spending Variance Is Unfavorable, It Can Be

question 25

Multiple Choice

When fixed overhead spending variance is unfavorable, it can be safely assumed that ________.

• A) flexible budget amount is higher than actual costs incurred
• B) fixed overhead allocated for actual output is lower than actual costs incurred
• C) flexible budget amount is lower than actual costs incurred
• D) fixed overhead allocated for actual output is higher than actual costs incurred

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Definitions:

Being Practical

Focusing on realistic and sensible approaches to solving problems or making decisions.

Big "C" Creativity

Refers to groundbreaking or transformative innovations and ideas that significantly impact a field or society as a whole, as opposed to everyday creative solutions.

Little c

Refers to 'little creativity' which indicates everyday problem-solving and innovative thinking that anyone can exhibit, as opposed to 'big creativity' seen in groundbreaking achievements.

Flow Experience

A state of complete immersion and optimal engagement in an activity, where individuals lose sense of time and are fully focused on the task at hand.