Variable Overhead Efficiency Variances Are Unfavorable When Actual Cost Driver

question 30

Multiple Choice

Variable overhead efficiency variances are unfavorable when actual cost driver activity exceeds the ________.

• A) standard cost-driver activity allowed for the actual output
• B) activity allowed for the expected output
• C) activity allowed for the planned output
• D) activity allowed for last period's output

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Definitions:

Geometric Sequence

A geometric sequence is a sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the common ratio.

Common Ratio

In a geometric sequence, the constant factor by which each term is multiplied to get the next term.

Geometric Sequence

A series of numbers in which each subsequent number is obtained by multiplying the preceding number by a constant, non-zero value known as the common ratio.

Geometric Sequence

An array of numbers wherein each element, after the first, is calculated by multiplying the previous element by a stable, non-zero quantity referred to as the common ratio.