Which of the Following Statements Regarding Variances Is True

question 18

Multiple Choice

Which of the following statements regarding variances is true?

• A)All the statements are true
• B)Variance calculations need to be made when budgeted costs are used to allocate indirect costs.
• C)Variances arise when an entity over estimates the expenditure level of indirect costs assigned to the cost pool or the expected usage of the cost driver.
• D)Variances arise when an entity underestimates the expenditure level of indirect costs assigned to the cost pool or the expected usage of the cost driver.

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Definitions:

Dental Assistant

A healthcare professional who supports dental practitioners in providing patient care, preparing and maintaining dental instruments and equipment.

Scope of Practice

The boundaries defined by law and professional guidelines within which a professional operates, including what tasks they are competent and authorized to perform.

Outpatient Center

A healthcare facility where patients receive treatments or services but do not stay overnight.

Occupational Analysis

The examination of the tasks, duties, and responsibilities of a job to determine the skills, knowledge, and abilities required.