Which of the Following Variances Is Caused by a Difference

question 143

Multiple Choice

Which of the following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period?

• A) Variable overhead spending variance.
• B) Variable overhead efficiency variance.
• C) Fixed overhead budget variance.
• D) Fixed overhead volume variance.

Acquire knowledge on the determination and reporting of the total cash balance on the balance sheet.

Comprehend the classification and reporting requirements for trade and nontrade receivables.

Grasp the importance and methods of cash planning and management in a business environment.

Understand the criteria for classifying an investment as a cash equivalent.

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Definitions:

General Journal Entries

Records of financial transactions not assigned to specific accounts in the general ledger, but recorded in a general journal.

Gross Margin

The difference between revenue and cost of goods sold divided by revenue, expressed as a percentage, indicating the financial health and efficiency of a product or business.

Gross Margin Ratio

A profitability metric that measures the difference between sales and the cost of goods sold, expressed as a percentage of sales.

Favorable Ratio

A ratio that indicates a positive outcome, often related to financial performance, such as higher revenue or lower expenses compared to previous periods.