ABC

question 31

Multiple Choice

ABC:

• A)has been very successful in recent years and is adopted widely.
• B)has been very successful in recent years but is not adopted widely.
• C)has been very unsuccessful but is still adopted because of legal requirements.
• D)has been very unsuccessful and has been replaced with traditional methods.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, reflecting efficiency in material use.

Variable Overhead Efficiency Variance

The difference between the actual hours taken to produce something and the standard hours expected, multiplied by the variable overhead rate.

Materials Price Variance

The difference between the actual cost of materials and the expected cost multiplied by the quantity of materials used.

Unfavorable

A term used to describe a variance or difference that negatively impacts financial performance.