The Variable Overhead Efficiency Variance Is Most Effective in Measuring

question 50

Multiple Choice

The variable overhead efficiency variance is most effective in measuring

• A)the difference between actual variable overhead costs incurred during the period and the budget allowance based on actual input.
• B)the difference between actual variable overhead costs incurred during the period and the budget amount based on the time that should have been expended in producing at a certain level of activity.
• C)the difference between actual hours utilized in production and the standard hours allowed at a certain level of output.
• D)excessive usage of overhead resources.

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Definitions:

Tactical

Pertaining to actions or strategies carefully planned to achieve a specific end, typically in the military or in business contexts.

Strategic

Refers to a high-level plan or approach designed to achieve long-term or overall goals.

Biased Forecast

A forecast that consistently tends to overestimate or underestimate the actual value due to systematic errors.