When Variable Overhead Efficiency Variance Is Favorable, It Can Be

question 45

Multiple Choice

When variable overhead efficiency variance is favorable, it can be safely assumed that the ________.

• A) actual rate per unit of the cost-allocation base is higher than the budgeted rate
• B) actual quantity of the cost-allocation base used is higher than the budgeted quantity
• C) actual rate per unit of the cost-allocation base is lower than the budgeted rate
• D) actual quantity of the cost-allocation base used is lower than the budgeted quantity

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Definitions:

CPFR

Collaborative Planning, Forecasting, and Replenishment, a business practice wherein trading partners coordinate their demand forecasting, inventory management, and production and purchasing planning.

Macroeconomics Factors

The broad external economic forces that affect an economy's performance, including inflation, unemployment rates, and GDP growth.

Seasonal Goods

Products whose demand or availability fluctuates with the seasons of the year, such as winter coats or sunblock.

CPFR System

Collaborative Planning, Forecasting, and Replenishment system designed to enhance supply chain integration by supporting and assisting joint practices.