When Compared to the Straight-Line Depreciation Method, MACRS Has

question 77

Multiple Choice

When compared to the straight-line depreciation method, MACRS has:

• A) a greater proportion of its depreciation early in the life of the asset.
• B) a lesser proportion of its depreciation early in the life of the asset.
• C) an equal proportion of its depreciation early in the life of the asset.
• D) None of the above.

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Definitions:

Variable Overhead Spending Variance

The difference between the actual costs incurred for variable overheads and the expected costs of variable overheads based on standard cost.

Fixed Overhead Spending Variance

This metric measures the difference between the actual fixed overhead costs incurred and the budgeted (or standard) fixed overhead costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost for the actual level of activity.

Performance Evaluation

The process of assessing the effectiveness and efficiency of individuals, teams, or systems within an organization.