The Variable Overhead Efficiency Variance Is Computed ________ and Interpreted

question 31

Multiple Choice

The variable overhead efficiency variance is computed ________ and interpreted ________ the direct-cost efficiency variance.

• A) the same as; the same as
• B) the same as; differently than
• C) differently than; the same as
• D) differently than; differently than

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Definitions:

Historical Cost

An accounting principle requiring assets to be recorded at their original purchase price, without adjusting for increases or decreases in value.