1.The fixed overhead cost variance can be further subdivided into the:

a.Price variance and the efficiency variance.

b.Spending variance and flexible-budget variance.

c.Production-volume variance and the efficiency variance.

d.Spending variance and the production-volume variance.

2.If inventories in a business using a standard cost system are insignificant, the firm would justified (in a practical sense) by disposing of variances each year:

a.As an adjustment to the finished goods inventory only.

b.As an adjustment to cost of goods sold only.

c.As adjustments to the inventory accounts and the cost of goods sold for the period.

d.As a special item (gain or loss) on the income statement for the period.

e.As an adjustment to the work-in-process (WIP) inventory only.