Answered

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Crediting Variable Overhead Spending Variance means we had an unfavorable outcome for Variable Overhead Spending Variance.

A. True
B. False

Sagot :

GinnyAnsweridn

Final answer:

Variable Overhead Spending Variance being credited indicates a favorable outcome, making the statement False.


Explanation:

False. Crediting Variable Overhead Spending Variance means that the actual variable overhead costs were lower than expected, leading to a favorable outcome for Variable Overhead Spending Variance. On the other hand, an unfavorable outcome would occur if actual variable overhead costs were higher than budgeted.


Learn more about Variance Analysis here:

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