A Favorable Fixed Overhead Spending Variance Indicates That

question 149

Multiple Choice

A favorable fixed overhead spending variance indicates that

• A)budgeted fixed overhead is less than actual fixed overhead.
• B)budgeted fixed overhead is greater than applied fixed overhead.
• C)applied fixed overhead is greater than budgeted fixed overhead.
• D)actual fixed overhead is less than budgeted fixed overheaD.

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Definitions:

Credit Sales

Sales made by a business for which payment is received at a later date, as opposed to immediate cash sales.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including repayment timelines, interest rates, and penalties for late payments.

Net 30

A trade credit term indicating that payment in full is expected within 30 days after the invoice date or goods are received.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.