What Is Total Fixed Overhead Budget Variance Always Equal To

question 20

Multiple Choice

What is total fixed overhead budget variance always equal to?

• A)fixed overhead volume variance
• B)fixed overhead volume variance plus fixed overhead spending variance
• C)total variable overhead budget variance plus fixed overhead spending variance
• D)total variable overhead budget variance

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Definitions:

Net Operating Income

The profit generated from a company's normal business operations, calculated as revenues minus operating expenses, excluding interest and taxes.

Flexible Budget

A pliable budget framework that modifies itself following changes in operational intensity or volume.

Units

In business or manufacturing, units refer to the individual pieces or quantities produced or sold.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding deductions for interest and taxes.