5Evaluate the following question and give a hypothetical example that will back up your answer.

When evaluating variances,isit best for managers and others to consider onlyone variance at a time?

State whether this is a goodidea or a bad idea and state your reasoning

QUESTION 7

A spending variance is made up of

a. price variance and quantity variance.

b. price variance and volume variance.

c. price variance and rate variance.

d. volume variance and quantity variance.

QUESTION 9

The difference between the actual fixed manufacturing overhead cost and the budgeted fixed manufacturing overhead cost is the

a. fixed overhead spending variance.

b. fixed overhead volume variance.

c. fixed overhead rate variance.

d. fixed overhead efficiency variance.