Which of the Following Statements Is Incorrect Regarding Variable Overhead

question 41

Multiple Choice

Which of the following statements is incorrect regarding variable overhead variances?

• A) Variable overhead variances are based on the same general formulas used to compute the materials and labor price variances.
• B) Variable overhead costs represent many inputs such as supplies, utilities and indirect labor.
• C) All companies must calculate price and usage variances for variable overhead costs.
• D) None of these answers is correct.

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Definitions:

Genital Stage

In Freud's psychosexual stages of development, the final stage beginning in puberty where sexual energy is focused on the genitals, and the individual has an interest in mature sexual relationships.

Latency Stage

The latency stage is a phase in Freudian psychosexual development occurring from age six to puberty, characterized by a decrease in sexual urges and interest.

Development

The process of growth, change, and improvement in a particular aspect, such as physical, cognitive, or social development.

Defense Mechanism

Unconscious psychological strategies used to cope with reality and to maintain self-image by reducing anxiety arising from unacceptable thoughts or feelings.