Which of the Following Is NOT True for Fixed Manufacturing

question 18

Multiple Choice

Which of the following is NOT true for fixed manufacturing overhead costs in a standard costing system?

• A) No efficiency variance is ever reported.
• B) Any volume variance is the result of applying fixed manufacturing overhead to products,not the result of poor cost control.
• C) Any underapplied or overapplied fixed manufacturing overhead is the same as the volume variance.
• D) The budget variance can arise under either a variable product costing system or an absorption product costing system.