The Coefficient of Variation Is

question 59

Multiple Choice

The coefficient of variation is

• A)the same as the variance
• B)the standard deviation divided by the mean times 100
• C)the square of the standard deviation
• D)the mean divided by the standard deviation

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Definitions:

Variable Overhead Spending Variance

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

Standard Variable Overhead Rate

The estimated cost per unit of the variable overheads that are expected to be incurred in the production process.

Actual Total Variable Overhead Cost

The real expense incurred for variable overheads, which fluctuates with changes in production volume.

Direct Labour Efficiency Variance

The difference between the standard labor hours for actual production and the actual labor hours worked, indicating labor efficiency.