Which of the Following Is Most Relevant to the Concept

question 38

Multiple Choice

Which of the following is most relevant to the concept of threshold?

• A) A department store has more than 50 employees.
• B) A survey reveals that people are prepared to drive a 30 minutes to get to a department store.
• C) A department store typically needs roughly 25,000 people living within a 15-minute radius.
• D) A department store only carries female products.
• E) A drugstore has a loyalty card that is extremely generous.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead costs, based on efficient use of resources.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the expected (or standard) wage rate, multiplied by the total hours worked.

Variable Overhead Rate Variance

Variable overhead rate variance is the difference between the actual variable overhead costs incurred and the expected (standard) costs, influenced by fluctuations in production activity levels.

Materials Price Variance

The difference between the actual cost of materials and the standard (or expected) cost, indicating how much more or less was spent on materials than was planned.