What Is the Fixed Overhead Volume Variance? Suppose That the Fixed

question 57

Essay

What is the fixed overhead volume variance? Suppose that the fixed overhead volume variance is unfavorable; what does that mean?

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Definitions:

Parent Assets

Assets held by a parent company, including those arising from investments in subsidiaries and other entities over which the parent company has control.

Carrying Amount

The book value of assets and liabilities that is reported in the financial statements, calculated as the original cost minus any depreciation, amortization, or impairment costs made against the asset.

Fair Value

The financial figure anticipated when disposing of an asset or the price to move a liability in a regulated exchange involving market entities on the date of valuation.

Gain On Bargain Purchase

Occurs when a company acquires another company for a price less than the fair market value of its net assets, resulting in a gain on the acquisition balance sheet.