For Which of the Following Reasons Does the Volume Variance

question 40

Multiple Choice

For which of the following reasons does the volume variance arise?

• A)Overhead costs incurred were greater or less than the amount budgeted.
• B)The company operated at more or less units of production activity than expected during the period.
• C)Actual activity equaled the volume used to establish the overhead cost per unit.
• D)The company purchased more or less materials for production than the amount used.

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Definitions:

Sum of Squares for Treatments

A statistical calculation that measures the total variation attributable to different treatments or groups in an experiment.

Sample Means

The average value of a set of data samples taken from a larger population.

One-way ANOVA

A statistical test used to compare the means of three or more independent groups to see if at least one mean is different from the others.

Population Means

Refers to the average values obtained from distinct and entire groups within a dataset or statistical model.