The Production Volume Variance Provides Information About

question 103

Multiple Choice

The production volume variance provides information about:

• A) Sales levels
• B) Variable overhead costs which vary with volume
• C) Fixed overhead costs which vary with volume
• D) Utilisation of capacity

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Definitions:

Generally Accepted Accounting Principles

A framework of accounting rules, standards, and procedures that companies must follow when compiling their financial statements in the United States.

Modified Opinion

A type of audit opinion suggesting that the auditor has reservations about certain aspects of the company's financial statements.

Qualified Opinion

An auditor's opinion suggesting that the financial statements of a firm are fairly presented, except for a particular area or exception.

Adverse Opinion

An auditor's statement indicating that a company's financial statements are not presented fairly or in conformity with Generally Accepted Accounting Principles (GAAP).