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:

Payment

A financial transaction where money is transferred in exchange for goods or services.

Future Date

A specified day in the future on which an event is planned or expected to occur.

Negotiable Instrument

A document that promises to pay a certain sum of money, which can be demanded at any time or on a fixed date, and allows the beneficiary to transfer this right to someone else.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing immediate needs.