(Appendix 11A)The Fixed Manufacturing Overhead Budget Variance Is

question 77

Multiple Choice

(Appendix 11A) The fixed manufacturing overhead budget variance is:

• A)the difference between budgeted fixed manufacturing overhead cost and actual fixed manufacturing overhead cost.
• B)the difference between actual fixed manufacturing overhead cost and applied fixed manufacturing overhead cost.
• C)the difference between budgeted fixed manufacturing overhead cost and applied fixed manufacturing overhead cost.
• D)the difference between fixed overhead at the planned level of activity and the flexible budget for actual activity.

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Definitions:

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; it measures a company’s production efficiency.

Sales Revenue

The income received by a company from its sales of goods or the provision of services.

Product Costs

The total costs directly tied to the creation of a product, including raw materials, labor, and overhead expenses.

Periodic Inventory System

An inventory accounting system that records the inventory levels and cost of goods sold (COGS) at the end of an accounting period, not tracking each sale or purchase individually.