The Variable Overhead Spending Variance for May Was

question 76

Multiple Choice

The variable overhead spending variance for May was:

• A) $1,710 F.
• B) $1,710 U.
• C) $2,290 F.
• D) $2,290 U.

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Definitions:

Conservatism

An accounting principle that dictates to recognize expenses and liabilities as soon as possible, but revenues and assets only when they are assured of being received.

Gross Profit Method

A technique used to estimate the amount of inventory a business has by applying the gross margin ratio to the cost of goods sold.

Fireproof Vault

A secure storage unit designed to protect contents from fire, typically used to safeguard valuable documents and items.

Grossprofit Ratio

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold (COGS), expressed as a percentage of sales.