The Fixed Factory Overhead Production-Volume Variance Represents

question 108

Multiple Choice

The fixed factory overhead production-volume variance represents:

• A) Money lost or gained because of achieved production levels.
• B) A result of unitizing fixed overhead costs for product-costing purposes.
• C) Information regarding the effectiveness of the organization in meeting sales targets.
• D) Information that management can use for cost-control purposes.
• E) Important information for companies pursuing a JIT production philosophy.

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Definitions:

Amount Record

The documentation of the monetary value of transactions or balances.

Settlement Date

The date on which a trade of financial instruments is finalized, with the transfer of securities and funds between parties.

Transaction Date

The date on which an actual trade or financial deal occurs.

Reporting Period

The specific time span for which financial activities are recorded and reported in financial statements.