Which One of the Following Reflects Both Price (Rate) as Well

question 5

Multiple Choice

Which one of the following reflects both price (rate) as well as efficiency (quantity) effects regarding individual variable overhead items?

• A) Total variable overhead variance.
• B) Variable overhead rate variance.
• C) Variable overhead spending variance.
• D) Variable usage variance.
• E) Variable overhead efficiency variance.

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Definitions:

Inventory Units

The individual items or quantifiable segments of products that a business holds in its inventory, each possibly having a different value or cost basis.

Perpetual LIFO

Perpetual Last-In-First-Out is an inventory cost method assuming that the last items added to inventory are the first sold, continually updating inventory and cost of goods sold values.

Ending Inventory

The overall price of items available for selling at the end of a fiscal period.

Inventory Units

Quantities of goods held by a business for the purpose of sale or production.