The Fixed Overhead Volume Variance Is a Measure of

question 198

Multiple Choice

The fixed overhead volume variance is a measure of

• A) the cost of overspending on fixed overhead items.
• B) the effect of the actual output differing from the output used to calculate the predetermined fixed overhead rate.
• C) the cost of unused activity capacity acquired.
• D) both the cost of overspending on fixed overhead items and the effect of the actual output differing from the output used to calculate predetermined fixed overhead rate.
• E) both the effect of the actual output differing from the output used to calculate the predetermined fixed overhead rate and the cost of unused activity capacity.

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Definitions:

Stock of Assets

Represents the total value of financial and physical assets owned by an individual, company, or country.

Wealth

The accumulation of valuable resources and assets, both tangible and intangible, that provide economic power or security to an individual or entity.

Wages and Salaries

Monetary compensation paid by employers to employees for their labor services, typically on an hourly, weekly, or annual basis.

Redistribution of Income

Economic policies or mechanisms intended to adjust the distribution of wealth or income in a society.