Which of the Following Variances Is Not Used in a Standard

question 147

Multiple Choice

Which of the following variances is not used in a standard cost system?

• A) Variable overhead spending variance.
• B) Fixed overhead spending variance.
• C) Variable overhead efficiency variance.
• D) Fixed overhead efficiency variance.
• E) Fixed overhead volume variance.

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Definitions:

Payables Policy

The process and timing in which obligations to pay for goods and services received by the business will be paid.

Goods and Services Received

The tangible and intangible items that are provided or delivered to a recipient.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of the shareholders.

Balance Sheet

A financial statement that presents the assets, liabilities, and equity of a company at a specific point in time, giving a snapshot of its financial condition.