The Overhead Spending Variance

question 98

Multiple Choice

The overhead spending variance:

• A)Occurs automatically whenever actual production levels differ from the "normal" production level used to compute the standard overhead cost per unit.
• B)Is the difference between amounts spent for actual manufacturing overhead costs and the amount applied to production.
• C)Is computed as the difference between variable overhead per the flexible budget and actual variable overhead costs incurred.
• D)Is the portion of the total overhead variance that is considered "controllable" by the production manager.

Identify the role of substitutes and complementary goods in affecting demand.

Understand the impact of income on demand for normal and inferior goods.

Understand the components and utilization of the BCG portfolio planning model.

Identify specific strategies appropriate for each category (Dogs, Question Marks, Stars, Cash Cows) in the BCG Matrix.