The Most Important Contributor to the Variance Between Actual and Applied

question 1

Multiple Choice

The most important contributor to the variance between actual and applied overhead costs is ________.

• A) poor forecasting
• B) inefficient use of overhead items
• C) price changes in overhead items
• D) operating at a different level of volume than the level used as a denominator in calculating the budgeted overhead rate

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Definitions:

Consideration

The value (such as money, services, or goods) that is promised to be transferred in a contract, creating a binding obligation.

Merchant Customer

A consumer who has a commercial relationship with a business or merchant, typically involving the purchase of goods or services.

Dispatch

The act of sending something or someone to a specific destination or for a certain purpose.

Acceptance

The act of agreeing to receive something offered or the acknowledgment of a new contractual proposal.