Match Each of the Following Terms with Their Correct Description

question 56

Multiple Choice

Match each of the following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Actual variable overhead - (standard variable overhead rate × actual hours)

• A)Variable overhead efficiency variance
• B)Activity flexible budget
• C)Fixed overhead volume variance
• D)Variable overhead spending variance
• E)Flexible budget variance
• F)Flexible budget
• G)Static budget
• H)Activity-based budgeting
• I)Performance report
• J)Fixed overhead spending variance

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Definitions:

Contribution Format

A type of income statement formatting that separates fixed and variable costs, helping to analyze the impact of sales volume on net income.

Net Operating Income

The total profit of a company after operating expenses are subtracted from operating revenues, excluding non-operating income and expenses.

Contribution Margin Ratio

The percentage of each sales dollar that contributes toward covering fixed costs and generating profit.

Fixed Monthly Expenses

Recurring expenses that do not change in amount from month to month, such as rent, salaries, and insurance premiums.