An Unfavorable Variable Overhead Efficiency Variance Indicates That

question 125

Multiple Choice

An unfavorable variable overhead efficiency variance indicates that:

• A)variable overhead items were not used efficiently
• B)the price of variable overhead items was less than budgeted
• C)the variable overhead cost-allocation base was not used efficiently
• D)the denominator level was not accurately determined

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Definitions:

Employer Contributions

Employer contributions refer to the amounts added by an employer to an employee's benefits or retirement savings accounts, such as a 401(k) plan, often matching the employee's contributions up to a certain percentage.

Tax-Deferred Plans

Investment accounts, such as IRAs or 401(k)s, where contributions may reduce taxable income in the year made, with taxes paid later upon withdrawal.

Accumulation Period

The phase in some investment vehicles, such as annuities, during which an investor builds up their investment value through payments or investment returns.

Distribution Period

The timeframe over which payments are made from a retirement or investment account to the account holder.