The Volume Variance Is Nonzero Whenever

question 98

Multiple Choice

The volume variance is nonzero whenever:

• A) standard hours allowed for the output of a period differ from the denominator level of activity.
• B) actual hours differ from the denominator level of activity.
• C) standard hours allowed for the output of a period differ from the actual hours during the period.
• D) actual fixed manufacturing overhead costs incurred during a period differ from budgeted fixed manufacturing overhead costs as contained in the flexible budget.

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Definitions:

International Transfers

Financial transactions where funds are sent across national borders, either by governments, businesses, or individuals.

Balance of Payments

A record of all economic transactions between the residents of a country and the rest of the world in a particular period.

Goods and Services

Refers to the physical products and intangible services that are produced and consumed by individuals or businesses.

Goods Imports

The act of bringing products or services into one country from another for the purpose of trade or sale.