A Firm with a Production Orientation Assumes That "If You

question 50

True/False

A firm with a production orientation assumes that "if you build it, they will come".

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Definitions:

Spending Variance

The difference between the budgeted or planned amount of expense and the actual amount spent.

Variable Overhead Spending Variance

The difference between the actual costs incurred for variable overheads and the expected costs of variable overheads based on standard cost.

Fixed Overhead Spending Variance

This metric measures the difference between the actual fixed overhead costs incurred and the budgeted (or standard) fixed overhead costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost for the actual level of activity.