A Manufacturing Company That Uses Standard Costs and Flexible Budgets

question 160

Multiple Choice

A manufacturing company that uses standard costs and flexible budgets can break the total variable overhead cost variance into:

• A) Volume and efficiency components.
• B) Spending and efficiency variances.
• C) Spending and production volume variances.
• D) Spending variances only.
• E) A selling price variance and a sales volume variance.

---

Definitions:

Collective Tasks

Activities or missions performed by a group working towards a common objective or goal.

Groupthink

A phenomenon that occurs within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Deindividuation

A psychological state where an individual loses self-awareness and a sense of individuality, often leading to disinhibited or antinormative behavior, typically within a group context.

Group Polarization

The phenomenon where a group discussion leads members to adopt more extreme positions and viewpoints than they initially held.