A Favorable Fixed Overhead Volume Variance Occurs If

question 114

Multiple Choice

A favorable fixed overhead volume variance occurs if

• A)there is a favorable labor efficiency variance.
• B)there is a favorable labor rate variance.
• C)production is less than planned.
• D)production is greater than planned.

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Definitions:

Personal Property

Items of property that include movable assets as opposed to real property (land and buildings).

Gross Negligence

A legal concept signifying a severe degree of negligence demonstrating a reckless disregard for the safety or lives of others.

Punitive Damages

Monetary compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious behavior.

Compensate

To compensate means to provide something, typically money, in recognition of loss, suffering, or damage incurred; a form of recompense.