The Total Overhead Cost Variance Is Equal to the Difference

question 16

Multiple Choice

The total overhead cost variance is equal to the difference between

• A)fixed overhead costs and variable overhead costs.
• B)estimated overhead rate and applied overhead rate.
• C)actual overhead costs and variable overhead costs.
• D)actual overhead costs and standard overhead costs.

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Definitions:

Full Goodwill

An accounting method that recognizes goodwill based on the total purchase price of a subsidiary, including both the parent's and minority interest's share.

Impairment Loss

The amount by which the carrying amount of an asset or cash-generating unit exceeds its recoverable amount.

NCI

An alternative term for non-controlling interest, highlighting the equity in a subsidiary not held by the parent company.

Parent Interest

Refers to the share of equity interest held by the parent company in a subsidiary, reflecting ownership and control.