Indicate Whether Each of the Following Statements Is True or False

question 53

Short Answer

Indicate whether each of the following statements is true or false.
Calculation of a predetermined overhead rate is based on estimates and can be done at the beginning of a period.______
A spending variance is the difference between applied overhead costs and estimated overhead costs.______
A difference between the actual and estimated volume of activity causes a volume variance.______
A volume variance is unfavorable if actual volume is greater than expected.______
For an accounting period,the volume variance is the amount by which overhead was over- or underapplied.______

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Definitions:

Behavioral Economists

Professionals who study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Prone To Errors

Characterized by a higher likelihood or tendency to make mistakes or inaccuracies.

Temptation

An urge or desire to perform an action that may be beneficial in the short term but is generally considered unwise or detrimental to long-term goals.

Behavioral Economists

Economists who study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and the consequences for market prices, returns, and resource allocation.