Which of the Following Variances Is Generally Not Reported as Being

question 14

Multiple Choice

Which of the following variances is generally not reported as being favourable or unfavourable?

• A) Variable overhead efficiency variance
• B) Direct labour rate variance
• C) Fixed overhead volume variance
• D) Direct materials usage variance

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Definitions:

Notes Payable

Liabilities represented by formal agreements or promissory notes to pay specific amounts of money at designated times.

Interest Payable

The amount of interest expense that has been incurred (accumulated) but not yet paid as of a specific date.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement.

Accrued Liability

Liabilities recognized on the books before they’re paid for, representing expenses that have been incurred but not yet settled in cash.