An Unfavorable Variable Overhead Spending Variance May Be Caused by

question 143

Multiple Choice

An unfavorable variable overhead spending variance may be caused by

• A) the use of excessive quantities of variable overhead items.
• B) the payment of lower prices for variable overhead items used.
• C) the use of excessive quantities of the variable overhead allocation base.
• D) both the use of excessive quantities of variable overhead items and the payment of lower prices for variable overhead items used.

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Definitions:

Emissions Tax

A tax imposed on companies for the pollution they produce, intended to motivate them to reduce pollutants and adopt cleaner processes.

Pollution Emissions

Refers to the release of pollutants into the environment, which can come from various sources such as factories, vehicles, and agriculture.

Tradable Pollution Permits

Government-issued allowances that give the holder the right to emit a specific amount of pollutants; these permits can be bought and sold, creating a market for pollution control.

Emitted Emissions

The pollutants released into the environment as a byproduct of economic activity, such as manufacturing or transportation.