The Controllable Variance Measures

question 36

Multiple Choice

The controllable variance measures

• A) operating results at less than normal capacity
• B) the efficiency of using variable overhead resources
• C) operating results at more than normal capacity
• D) control over fixed overhead costs

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Definitions:

Depreciable Asset Accounting

The accounting process that involves allocating the cost of a tangible asset over its useful life.

Depreciation Expense

The portion of the total cost of a depreciable asset that is allocated as an expense to the income statement in a given period.

Residual Value

The estimated value of a leased asset at the end of the lease term, or the expected value of an asset after its useful life ends.

Depreciation Rate

The percentage or method used to calculate the decrease in value of an asset over time due to use, wear and tear, or obsolescence.