Under the Modified Accrual Basis of Accounting for the General

question 15

Multiple Choice

Under the modified accrual basis of accounting for the general fund,expenditures should be recognized in the period in which the related liability is:
I.paid.
II.incurred.

• A)I only
• B)II only
• C)Both I and II
• D)Neither I nor II

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected overhead based on standard costs.

November

The eleventh month of the Gregorian calendar, following October and preceding December.

Variable Overhead Efficiency Variance

The difference between the expected and actual variable overhead costs, based on the efficient use of production resources.

Variable Overhead Efficiency Variance

The difference between the budgeted and actual variable overhead costs, attributable to differences in the efficiency of utilizing resources.