The Variance That Captures the Effect of Efficient Use of the Activity

question 36

Multiple Choice

The variance that captures the effect of efficient use of the activity base on the cost of variable overhead is the

• A)Variable overhead spending variance.
• B)Variable overhead efficiency variance.
• C)Variable overhead volume variance.
• D)None of these ans choices are correct.

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Definitions:

Worksheet

A paper or digital form used to organize data and calculate figures, often preliminary to the preparation of financial statements.

Operating Expense

A type of expenditure that a business incurs as a result of carrying out its day-to-day operations, excluding the cost of goods sold.

Goods Available for Sale

All the products that a company has in its inventory at the beginning of a period plus any purchases made during that period.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, essential for calculating cost of goods sold.