Which of the Following Variances Is Generally Not Reported as Being

question 105

Multiple Choice

Which of the following variances is generally not reported as being favorable or unfavorable?

• A) Variable overhead efficiency variance
• B) Direct labor rate variance
• C) Fixed overhead volume variance
• D) Direct materials usage variance

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Definitions:

Note Payable-State Bank

A debt obligation in the form of a written promissory note made to a state bank, specifying the terms under which repayment will be made.

Collateralized Borrowing

Obtaining a loan by pledging an asset as security for the loan, which the lender can seize if the borrower defaults.

Assets

Resources owned by a company that provide future economic benefits.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits.