Because Fixed Overhead Is Made Up of Many Items

question 197

Multiple Choice

Because fixed overhead is made up of many items

• A) the fixed overhead spending variance is not meaningful.
• B) it is not possible to calculate a fixed overhead volume variance.
• C) the fixed overhead volume variance will always be unfavorable.
• D) a line by line comparison of budgeted costs with actual costs provides more information.
• E) All of these.

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Definitions:

Functional Analysis

A study aimed at understanding the purpose or role of an entity or behavior within a system, often used in psychology to understand the causes of behavior.

Functional Fixedness

Functional fixedness is a cognitive bias that limits a person to using an object only in the way it is traditionally used, which can hinder the solving of new problems.

Positive Transfer

The beneficial effect of past learning on the acquisition of new knowledge or skills.

Means-end Analysis

A problem-solving technique that involves breaking down a problem into smaller, more manageable parts to achieve a desired goal.