The Difference Between Budgeted Fixed Factory Overhead for a Period

question 4

Multiple Choice

The difference between budgeted fixed factory overhead for a period and the amount of the fixed factory overhead applied to production during the period is the:

• A)Fixed factory overhead efficiency variance.
• B)Fixed factory overhead production-volume variance.
• C)Fixed factory overhead spending variance.
• D)Fixed factory overhead sales-volume variance.
• E)Fixed factory overhead flexible budget variance.

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Definitions:

Behavioral Economics

A method of economic analysis that applies psychological insights into human behaviour to explain economic decision-making.

Self-Serving Bias

Self-serving bias is the tendency to attribute positive events to one's own character but attribute negative events to external factors, affecting judgment and decision-making.

Planning Fallacy

The optimistic cognitive bias that leads individuals or teams to underestimate the time, costs, and risks of future actions, while overestimating the benefits.

Overconfidence Effect

A cognitive bias where people overestimate their own abilities, knowledge, or predictions.