Which of the Following Statements Is False

question 17

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 favourable if standard hours allowed for output are greater than the standard hours at normal capacity.

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Definitions:

Major Categories

Broad, overarching groups or classes into which items, ideas, or phenomena are classified based on shared characteristics or attributes.

Inventory Items

Goods or products that a business holds for the purpose of sale or production, including raw materials, work-in-progress, and finished goods.

Periodic Inventory System

An inventory accounting method where inventory and cost of goods sold are determined at the end of an accounting period based on a physical count.

Ending Inventory

Ending inventory is the total value of all inventory, including raw materials, work-in-progress, and finished goods, that a company has at the end of its fiscal period.