The Fixed Overhead Spending Variance

question 204

Multiple Choice

The fixed overhead spending variance

• A) is usually not significant.
• B) is made up of many individual items.
• C) is the difference between actual costs and budgeted costs.
• D) merits investigation only if the variance is material.
• E) All of these.

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Definitions:

Intermediate Planning

The process of setting goals and outlining strategies for a middle-range time frame, typically covering 1 to 3 years.

Long-Term Planning

The process of setting goals and outlining strategies for future activities over an extended period, typically beyond five years.

Strategic Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy.

Short-Term Planning

The process of organizing immediate goals and objectives, usually spanning a period of less than one year.