The Difference Between Variable Overhead Incurred and Total Standard Variable

question 82

Multiple Choice

The difference between variable overhead incurred and total standard variable overhead for the output of the period is called the:

• A)Variable factory overhead flexible-budget variance.
• B)Variable factory overhead spending variance.
• C)Variable factory overhead rate variance.
• D)Variable factory overhead efficiency variance.
• E)Variable factory overhead usage variance.

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Definitions:

Current Liabilities

Short-term financial obligations that are due to be paid within one year or within the normal operating cycle of a business.

Acid-Test Ratio

A liquidity ratio, also known as the quick ratio, that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and accounts receivable).

Stockholders' Equity

The remaining value of a corporation's assets once liabilities are subtracted, which signifies the share of ownership held by the shareholders.

Prepaid Expenses

Expenses paid for in advance and recorded as assets before they are used or consumed.