There Can Be No Volume Variance for Variable Manufacturing Overhead

question 135

True/False

There can be no volume variance for variable manufacturing overhead.

---

Definitions:

Lease Rate

The amount of money paid over a specified time period for the use of an asset or property, typically expressed as an annual amount or percentage.

Operating Leases

Provides for both financing and maintenance. Generally, the operating lease contract is written for a period considerably shorter than the expected life of the leased equipment and contains a cancellation clause; sometimes called a service lease.

Maintenance

Maintenance involves the actions taken to keep equipment, buildings, or software operating efficiently or to repair it to optimal functioning state.

Full Amortization

A loan repayment plan in which regular payments are made over the loan term, completely paying off both interest and principal by the end.