The Two Variances for Variable Overhead Are

question 12

Multiple Choice

The two variances for variable overhead are

• A) spending (expenditure) and efficiency variances
• B) spending and budget variances
• C) budget and volume variances
• D) budget and efficiency variances

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Definitions:

Gainsharing

A performance-based compensation strategy that rewards employees for contributing to the company's success through efficiencies and improvements.

Group Incentive Plan

A compensation system designed to reward a group of employees based on the collective achievements or performance of the group.

Retention Bonus

A financial incentive offered to an employee to encourage them to stay with the company for a specified period.

Retention Bonuses

Financial incentives offered to employees to encourage them to stay with the company for a specified period.