Preference Shares Can Have Various Features, Whereas Ordinary Shares Usually

question 70

True/False

Preference shares can have various features, whereas ordinary shares usually have voting rights and an entitlement to share in the firm's earnings.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost of variable overhead allotted based on the activity level.

Variable Overhead Efficiency Variance

The difference between actual hours worked to produce an item and the standard hours expected, multiplied by the variable overhead rate.

FOH Volume Variance

The difference between the budgeted fixed overhead and the applied fixed overhead, which is attributed to the difference in actual and budgeted activity levels.

FOH Budget Variance

The difference between the actual and budgeted factory overhead costs over a certain period, indicating under or overspending.