Which of the Following Elements Is (Are) Needed in a Straightforward

question 21

Multiple Choice

Which of the following elements is (are) needed in a straightforward calculation of the variable-overhead spending variance?

• A) Variable overhead incurred during the period.
• B) Budgeted variable overhead based on actual hours worked.
• C) Standard variable overhead applied to production.
• D) Both variable overhead incurred during the period and budgeted variable overhead based on actual hours worked.
• E) Both variable overhead incurred during the period and standard variable overhead applied to production.

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Definitions:

Double-Entry Bookkeeping System

An accounting principle where each financial transaction is recorded in two accounts, ensuring the books are always balanced.

Single-Entry System

An accounting method where each financial transaction is recorded only once, either as an income or an expense.

Business Operating Expenses

Costs associated with the day-to-day functions of running a business, excluding the cost of goods sold.

Suppliers

Entities that provide goods or services to another organization or individual.