Which of the Following Is True for Transactional Relationships

question 95

Multiple Choice

Which of the following is true for transactional relationships?

• A)They are related to buy-and-sell exchanges of goods and services.
• B)They provide a significant degree of mutual benefit for supplier and buyer.
• C)They require a sharing of knowledge and expertise,expenses and risks.
• D)They involve the highest level of collaborative relationships between buyer and supplier.

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Definitions:

Variable Overhead Spending Variance

The difference between actual variable overhead costs and the budgeted costs for the actual level of activity, indicating overspending or underspending.

Labour Efficiency Variance

The difference between the budgeted labor hours or costs and the actual labor hours or costs incurred.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead based on hours worked and the standard cost of variable overhead for those hours.