What Is Characteristic of the Fixed Overhead Spending Variance

question 104

Multiple Choice

What is characteristic of the fixed overhead spending variance?

• A) It is usually significant.
• B) It is made up of a single item.
• C) It is investigated only if the variance is immaterial.
• D) It is the difference between actual costs and budgeted costs.

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Definitions:

360-Day Year

An accounting convention used for interest calculations where the year is simplified to 360 days to ease the computation process.

Exact Simple Interest

Interest calculated on the principal amount of a loan or investment, considering the exact number of days in the interest period.

365-Day Year

A standard year length used in some financial calculations, ignoring leap years.

Exact Simple Interest

Interest calculated precisely based on the principal amount, a fixed interest rate, and the number of days between payments.