Because Fixed Overhead Is Made Up of Many Items

question 152

Multiple Choice

Because fixed overhead is made up of many items

• A)the fixed overhead spending variance is not meaningful.
• B)it is not possible to calculate a fixed overhead volume variance.
• C)the fixed overhead volume variance will always be unfavorable.
• D)a line by line comparison of budgeted costs with actual costs provides more information.
• E)all of these.

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Definitions:

Independent Roles

Positions or functions in a group or organization where individuals work autonomously, with minimal dependence on others for the completion of tasks.

Functional Team

A group of individuals with specific roles and expertise, working together towards a common business task or objective, typically within the same department or functional area.

Determinant

An element or factor that decisively affects the nature or outcome of something, often used in the context of identifying causal factors in various fields of study.

Trust and Cooperation

The relationship between individuals or groups characterized by mutual confidence and teamwork towards common goals.