Why Is the Budget Variance the Real Control Variance, for Fixed

question 73

Multiple Choice

Why is the budget variance the real control variance, for fixed overhead?

• A) It compares budgeted expenditures with budgeted fixed overhead costs.
• B) It compares actual expenditures with budgeted fixed overhead costs.
• C) It compares actual expenditures with budgeted variable overhead costs.
• D) It compares the static budget with the flexible budget.

---

Definitions:

Statutes

Written laws enacted by legislative bodies at the federal, state, or local levels.

Wool Products Labeling Act

A U.S. law ensuring that products labeled as containing wool accurately describe the fiber content and origin of the wool.

Imported Canine

A dog that has been brought into one country from another for any of various reasons, including sale or adoption.

Credit Report

A detailed report of an individual's credit history prepared by a credit bureau and used by a lender to determine a loan applicant's creditworthiness.