Which of the Following Statements Is False

question 120

Multiple Choice

Which of the following statements is false?

• A) The overhead volume variance indicates whether plant facilities were used efficiently during the period.
• B) The costs that cause the overhead volume variance are usually controllable costs.
• C) The overhead volume variance relates solely to fixed costs.
• D) The overhead volume variance is favorable if standard hours allowed for output are greater than the standard hours at normal capacity.

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Definitions:

Skill-based Pay

A compensation system where employees are paid based on the skills and knowledge they possess rather than their job title or position.

Motivation System

A framework within an organization designed to stimulate and encourage employees to achieve goals and improve performance.

Profit Sharing

A compensation strategy where employees receive a share of the company's profits in addition to their regular salary.

Large Organizations

Refers to businesses or institutions with a wide scope of influence, often characterized by complex structures, significant employee numbers, and expansive operational capacities.