If the Actual Number of Units Manufactured Is Less Than

question 210

True/False

If the actual number of units manufactured is less than the number of units anticipated to be manufactured, then the fixed overhead volume variance will always be unfavorable.

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular period or item.

Actual Level

The real, measured level of production, performance, or activity, as opposed to planned or theoretical levels.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular category or period, indicating over or under spending.

Planning Budget

A financial plan that estimates the revenue and expenses for a specific period, often used for setting performance expectations.