The Production-Volume Variance, Which Relates Only to Fixed Manufacturing Overhead

question 69

True/False

The production-volume variance, which relates only to fixed manufacturing overhead, exists under absorption costing but not under variable costing.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues.

Revenue Accounts

Accounts recording the income a company generates from its operations, not related to its investments or other sources.

Gain Accounts

Accounts reflecting increases in equity, other than those relating to contributions from equity participants, typically from transactions and other events affecting the entity.