The Variable Overhead Spending Variance

question 170

Multiple Choice

The variable overhead spending variance

• A)Is the difference between the actual cost of variable overhead items and the amount of variable overhead cost that is expected to be incurred at the actual level of activity base experienced.
• B)Has to do with the efficient use of the activity base rather than the efficient use of the variable overhead item.
• C)Captures whether the company has paid more or less for variable overhead items.
• D)All of these ans choices are correct.

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Definitions:

Ending Inventory

The worth of merchandise available for purchase at the conclusion of a financial period.

Maturing Obligations

Debts or obligations that are due to be paid within the next accounting period.

Liquidity Ratios

Financial metrics used to measure a company's ability to meet its short-term obligations with its current assets.

Solvency Ratios

Measures of the ability of the company to survive over a long period of time.