The Overhead Volume Variance Relates Only to Fixed Overhead Costs

question 80

True/False

The overhead volume variance relates only to fixed overhead costs.

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Definitions:

Idle Production Capacity

Occurs when the service provider is available but there is no demand for the service.

Demand Exceeds

A situation where the demand for a product or service surpasses its supply, often leading to stock shortages or increased prices.

No Demand

A market situation where there is no consumer desire or interest in purchasing a specific product or service.

Inconsistency

The state of being inconsistent; lack of uniformity or steadiness in actions, values, or outcomes.