Which of the Following Variances Is Least Likely to Provide

question 122

Multiple Choice

Which of the following variances is least likely to provide useful information for making decisions, if calculated as part of a comprehensive set of variances?

• A) Variable overhead spending
• B) Production volume variance
• C) Direct material price
• D) Direct labour efficiency

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Definitions:

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, that lenders charge borrowers.

Classical Economists

Economists from the 18th and 19th centuries who believed in self-regulating markets and emphasized the importance of supply in determining economic value.

Money

A medium of exchange that facilitates trade, and is widely accepted in payment for goods and services and repayment of debts.

Savings

The portion of income not spent on consumption, often set aside for future use or investment.