Which of the Following Statements Is True

question 41

Multiple Choice

Which of the following statements is true?

• A) Forces for change usually come from within the organization; forces against change usually come from outside the organization.
• B) Forces for change usually come from outside the organization; forces against change usually come from inside the organization.
• C) Forces for and against change come from inside and outside the organization.
• D) No statement is true.

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Definitions:

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to variations in the number of units produced.

Standard Fixed Manufacturing Overhead Rate

A predetermined rate used to assign fixed manufacturing overhead costs to products based on a consistent activity base.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.

Actual Fixed Overhead Costs

Actual fixed overhead costs are the incurred expenses that do not vary with the level of production or sales, such as rent and salary of permanent staff.