Which of the Following Statements About Overhead Variances Is False

question 160

Multiple Choice

Which of the following statements about overhead variances is false?

• A) Standard hours allowed are used in calculating the controllable variance.
• B) Standard hours allowed are used in calculating the volume variance.
• C) The controllable variance pertains solely to fixed costs.
• D) The total overhead variance pertains to both variable and fixed costs.

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Definitions:

Regulating Monopolies

Government policies or laws designed to control or limit the power of monopoly firms to ensure fair competition and protect consumers.

Price Discrimination

The strategy of selling the same product or service at different prices to different customers, often based on the willingness to pay, market segment, or purchase volume.

Conditions

The circumstances or criteria affecting the operation of markets or the status of economic factors.

Price Elasticity

The measure of how much the quantity demanded of a good or service changes in response to a change in its price.