Which of the Following Variances Would Be Useful in Calling

question 44

Multiple Choice

Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items?
$\begin{array}{|l|l|l|}\hline \text { Option } & \begin{array}{l}\text { Variable overhead spending } \\\text { variance }\end{array} & \text { Fixed overhead volume variance } \\\hline \text { A } & \text { No } & \text { No } \\\hline \text { B } & \text { No } & \text { Yes } \\\hline \text { C } & \text { Yes } & \text { No } \\\hline \text { D } & \text { Yes } & \text { Yes } \\\hline\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Advertising Expense

Costs incurred in promoting products or services to attract sales or increase brand awareness.

Medical Fees Earned

Medical Fees Earned refers to revenue generated by healthcare providers for services rendered to patients.

Permanent Account

An account in the general ledger that is not closed at the end of the accounting year, including accounts like asset, liability, and equity accounts.

Nominal Account

A temporary account that records transactions related to expenses, revenues, gains, and losses during an accounting period.