Which of the Following Is the Correct Mathematical Expression to Calculate

question 18

Multiple Choice

Which of the following is the correct mathematical expression to calculate the fixed overhead spending variance?

• A) Static-budget amount - Flexible-budget amount
• B) Flexible-budget amount - Actual costs incurred
• C) Static-budget amount - Fixed overhead allocated for actual output
• D) Flexible-budget amount - Fixed overhead allocated for actual output

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Definitions:

Job Ranking

A method of job evaluation that involves creating a hierarchy of jobs from lowest to highest based on their overall value to the organization.

Point Method

A technique used in job evaluation to quantify the value of a job's aspects or components, assigning points based on complexity, skills required, and responsibilities.

Expectancy Theory

A motivation theory suggesting that an individual's willingness to work is based on the expectation that their efforts will lead to desired performance and rewards.

Instrumentality Theory

A concept in motivation theory that suggests the perceived relationship between performance and outcomes affects motivation.