The Efficiency Variance Computed on a Three-Variance Approach Is

question 225

Multiple Choice

The efficiency variance computed on a three-variance approach is

• A)equal to the efficiency variance computed on the four-variance approach.
• B)equal to the variable overhead spending variance plus the efficiency variance computed on the four-variance approach.
• C)computed as the difference between applied variable overhead and actual variable overhead.
• D)computed as actual variable overhead minus the flexible budget for variable overhead based on actual hours workeD.

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Definitions:

Stock Certificates

Stock certificates are physical documents that evidence ownership of shares in a corporation.

Physical Stock Certificate

A tangible document issued by a corporation that certifies the ownership of shares in the corporation by a shareholder.

Shareholder's Ownership

The holding of shares in a company by individuals or entities, providing them ownership interests and possibly dividends.

Corporation's Name

The legal name under which a corporation is registered to conduct business, distinct from its owners and shielded by the corporate veil.