The Difference Between the Total Actual Cost Incurred and the Total

question 174

Multiple Choice

The difference between the total actual cost incurred and the total standard cost is called the:

• A)Flexible variance.
• B)Usage variance.
• C)Cost variance.
• D)Controllable variance.
• E)Volume variance.

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Definitions:

Automated Router

A device or software that uses pre-set guidelines to direct data traffic automatically in a network.

Predetermined Overhead Rate

A rate calculated at the beginning of a period, used to allocate overhead costs to products based on a particular activity base, such as machine-hours or labor-hours.

Machine-Hours

The total number of hours that machinery is in operation, often used as a measure for allocating manufacturing overhead costs.

Machine-Hours

A measure of production time based on the number of hours machines are operating.