Reference no: EM132559241
Question 1: What is the difference between the actual amount of overhead and the amount of overhead that would be included in a flexible budget called?
Total overhead variance
Actual overhead variance
Controllable overhead variance
Overhead volume variance
Question 2: Why is cost-plus pricing criticized?
It includes selling and administrative costs in determining the product cost.
It does not consider the fixed manufacturing overhead in determining the product cost.
It is inherently circular for manufacturing firms.
It requires a high level of technical expertise to price products using this method.
Question 3: Capital expenditure decisions:
are useful for estimating inventory acquisition costs.
always involve the acquisition of long-lived assets.
consist of a final list of approved projects.
All of these answer choices are correct.
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