Which of the following is the correct mathematical expression to calculate the fixed overhead spending variance?
A) Static-budget amount — Flexible-budget amount
B) Actual costs incurred — Flexible-budget amount
C) Static-budget amount — Fixed overhead allocated for actual output
D) Flexible-budget amount — Fixed overhead allocated for actual output
Answer: B
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A) Solutions selling B) Proposal solicitation C) Problem recognition D) Performance review E) Real-time marketing
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A) it is easier to manipulate a model than a real system. B) you can find out probable outcomes of an action before actually taking it. C) using well-designed models always guarantees you success in implementation. D) the cost of a model is usually much lower than manipulating the system in implementation.