When Variable Overhead Spending Variance Is Unfavorable, It Can Be

question 101

Multiple Choice

When variable overhead spending variance is unfavorable, it can be safely assumed that ________.

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

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Definitions:

Limited Offers

Promotional or sales initiatives that are available for a restricted time frame or quantity, often used to create urgency or exclusivity.

Tombstone Advertisement

A print advertisement that announces a forthcoming sale of securities in a format similar to that of a tombstone.

Waiting Period

A set length of time that must pass before a certain action can be taken or a particular event occurs, often used in legal contexts.

Five-Year Terms

Fixed periods of five years that are often applied to political offices, employment contracts, or agreements.