The Variable Overhead Spending Variance Captures

question 144

Multiple Choice

The variable overhead spending variance captures

• A)whether the company has paid more or less for variable overhead items.
• B)the relative efficiency with which variable overhead items are used.
• C)whether a company is more or less efficient with respect to the production activity,since variable overhead varies with production activity.
• D)both whether the company has paid more or less for variable overhead items and the relative efficiency with which variable overhead items are used.

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Definitions:

Competitive Strategies

Techniques and plans that a company adopts to attract customers, withstand competitive pressures, and strengthen an organization’s market position.

Competitive Edge

A distinct advantage that allows an organization to outperform its competitors.

Cost Leadership

A business strategy aiming to achieve the lowest operational costs within an industry, enabling the company to offer lower prices than competitors and gain market share.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones due to positive experiences and satisfaction.