The Variable Factory Overhead Controllable Variance Measures

question 113

Multiple Choice

The variable factory overhead controllable variance measures:

• A)operating results at less than normal capacity.
• B)the efficiency of using variable overhead resources.
• C)operating results at more than normal capacity.
• D)control over fixed overhead costs.

---

Definitions:

Production Inefficiencies

Situations where resources are not used in the most cost-effective way, leading to waste and decreased output.

Differentiated Product

is a good or service that is distinguished from similar products by unique characteristics, branding, or quality, allowing it to compete on factors other than price.

Inelastic Demand

A situation where the demand for a product does not change significantly with a change in price.

Marginal Revenue

The rise in income achieved by selling an extra unit of a product or service.