Two of the Primary Ways to Manage Variable Overhead Costs

question 33

Multiple Choice

Two of the primary ways to manage variable overhead costs include

• A)eliminating non-value-added costs and reducing the consumption of cost drivers.
• B)eliminating non-value-added costs and increasing fixed overhead expenses.
• C)reducing the consumption of cost drivers and increasing variable costs.
• D)using more energy-efficient equipment and planning for appropriate capacity levels.
• E)increasing variable costs and eliminating non-value added costs.

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Definitions:

Significant Change

A measurable difference in data or results that surpasses the threshold of statistical significance, indicating that it is unlikely to have occurred by chance.

Expected Number

The value predicted for a random variable, taking into account all possible values it can take weighted by their respective probability of occurrence.

Test Statistic

A calculated value from sample data used to decide whether to reject the null hypothesis in statistical hypothesis testing.

Significant Change

An alteration in data or a pattern that is considered to be of importance due to its impact or magnitude.