Variable Overhead Costs

question 148

Multiple Choice

Variable overhead costs:

• A)never have any unused capacity
• B)have no production-volume variance
• C)allocated are always the same as the flexible-budget amount
• D)All of these answers are correct.

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Definitions:

Divisional Income

The earnings generated by a specific division or segment of a larger company, used for evaluating the division's financial performance.

Minimum Acceptable

The lowest level or standard that will be considered satisfactory or acceptable.

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after all expenses are deducted.

DuPont Formula

A method of performance measurement that breaks down return on equity into three component parts.