The Overhead Volume Variance Relates Only to

question 110

Multiple Choice

The overhead volume variance relates only to

• A) variable overhead costs.
• B) fixed overhead costs.
• C) both variable and fixed overhead costs.
• D) all manufacturing costs.

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Definitions:

Gross Material Requirements

The total amount of raw materials needed to produce a particular quantity of finished goods, without accounting for waste or efficiency variations.

Inventory On Hand

The total quantity of goods available and stored by a business at any given time.

Planning Bills Of Material

A documented list of all the components, materials, and assemblies needed to create a product, used for planning and forecasting purposes.

Kits

Assembled sets of components or materials prepared for immediate use or further assembly.