Which of the Following Statements About Variable Overhead Variances Is

question 50

Multiple Choice

Which of the following statements about variable overhead variances is correct?

• A) Variable overhead efficiency variance highlights any inefficient uses of variable indirect costs such as electricity.
• B) Variable overhead efficiency variance is not a useful control tool.
• C) Variable overhead spending variance is useful only as a product costing tool.
• D) Variable overhead spending variance may be caused by lower than expected usage of direct labour hours.

---

Definitions:

Percentage of Trend

A measure expressing the degree to which a variable changes over time, typically calculated as a ratio of the change to the initial value.

Seasonal Indexes

Numeric factors used to adjust data for seasonal variations, making trend analysis more accurate.

Quarterly Data

Data that is collected, reported, or compiled every three months within a year, often used in business and finance to track performance.

Seasonal Indexes

Factors used to adjust data to account for seasonal effects, enabling more accurate analysis across different times of the year.