Which of the Following Correctly Demonstrates the Comparison of the Four-Variance

question 68

Multiple Choice

Which of the following correctly demonstrates the comparison of the four-variance method of factory overhead analysis to the two-variance method of factory overhead analysis?

• A)The sum of the fixed and variable spending variances in the four-variance method is equal to the flexible-budget variance in the two-variance method.
• B)The sum of the fixed and variable spending and variable efficiency variances in the four-variance method is equal to the flexible-budget variance in the two-variance method.
• C)The sum of the fixed and variable spending,variable efficiency and production-volume variances in the four-variance method is equal to the flexible-budget variance in the two-variance method.
• D)The fixed spending variance in the four-variance method is equal to the flexible-budget variance in the two-variance method.

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Definitions:

Antitrust Cases

Legal disputes that arise when government entities investigate and challenge business practices that threaten to monopolize a market or restrict competition.

Price-fixing

An illegal agreement among competitors to set prices at a certain level, preventing competition and harming consumers.

Industrial Regulation

Policies and laws enforced by government agencies to regulate industries in order to promote fair competition and protect consumers.

Antitrust Policy

Government regulations designed to promote competition and prevent monopolies, mergers, or cartels that harm consumers.