The Fixed Overhead Volume Variance Is Due to Which of the Following

question 52

Multiple Choice

The fixed overhead volume variance is due to which of the following?

• A) Inefficient or efficient use of whatever the denominator activity is.
• B) Inefficient or efficient use of overhead resources.
• C) A difference between the denominator activity and the standard hours allowed for the actual output of the period.
• D) A shift in the amount of hours required to produce the actual output.

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Definitions:

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.

Product Value

The importance or usefulness of a product to a consumer, often reflected in their willingness to pay for it.

Producing More X

Increasing the output or manufacture of a specific product or commodity, referred to as "X".

Society Gains

Refers to the overall benefits or improvements in welfare that accrue to a community or society from economic activities or policies.