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:

Accounts Receivable

Money due to a company from its clients for products or services that have been delivered or used but not yet paid for.