A Variable Overhead Spending Variance Is Caused by

question 43

Multiple Choice

A variable overhead spending variance is caused by

• A)using more or fewer actual hours than the standard hours allowed for the production achieved.
• B)paying a higher/lower average actual overhead price per unit of the activity base than the standard price allowed per unit of the activity base.
• C)larger/smaller waste and shrinkage associated with the resources involved than expected.
• D)both b and c are causes.

Explain the implications of non-conformity of goods and the responsibilities of the seller and buyer.

Analyze legal disputes over goods between original owners and innocent purchasers.

Understand the impact of specific shipping terms on the risk of loss and responsibilities.

Assess how insurable interest affects the ability to insure goods against damage or loss.

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Definitions:

Crayola Inc.

A company known for its wide range of art supplies, particularly crayons, catering to both educational and recreational uses.

Smartphone Company

A company that specializes in the development, manufacturing, and marketing of smartphones and related services.

Micro-multinational Corporation

A small company that operates in multiple countries, leveraging the advantages of international markets despite its size.

Online Learning Platforms

Digital environments or software that provide access to educational content and resources over the internet, facilitating remote learning.