Washington Inc

question 12

Multiple Choice

Washington Inc.has an unfavourable fixed overhead spending variance.Which of the following would be the most likely reason for this variance?

• A) More units were actually produced than predicted.
• B) Fewer units were actually produced than predicted.
• C) Actual fixed overhead was more than predicted.
• D) Actual fixed overhead was less than predicted.

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Definitions:

Revenue Recognition

Revenue recognition is an accounting principle that outlines the specific conditions under which revenue is recognized or accounted for.

Guidelines

Guidelines are recommendations or principles that aim to streamline certain processes or set standards.

Risk and Return

A financial concept indicating that the potential return on any investment is directly correlated with the level of risk taken.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.