The Variable Overhead Cost Variance Measures How Well the Business

question 55

Multiple Choice

The variable overhead cost variance measures how well the business ________.

• A) keeps unit costs of variable overhead inputs within standard
• B) uses its variable overhead inputs
• C) keeps fixed overhead within standard
• D) explains why fixed overhead is under allocated or overallocated

---

Definitions:

Homeostatic Interaction

The process by which biological systems maintain stability and equilibrium within their internal environment despite external changes.

Positive Feedback

A process in which the output or result of an action enhances or amplifies the original action.

Synergistic Interaction

A phenomenon where combined actions of different elements produce an effect greater than the sum of their separate effects.

Exponential Growth

Rapid increase in a quantity where the rate of growth is proportional to the current size, leading to ever-larger increases over time.