The Production-Volume Variance

question 28

Multiple Choice

The production-volume variance

• A)only pertains to variable overhead costs.
• B)only pertains to fixed overhead costs.
• C)is not applicable in analysis of inventory costs.
• D)pertains to both fixed and variable overhead costs.
• E)equals the rate variance minus the efficiency variance.

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Definitions:

Total Net Assets

Total net assets represent the total value of an organization's assets minus its total liabilities, indicating the net worth of an organization.

Total Capital

The sum of a company's equity, debt, and any other long-term financing.

Admission by Investment

The process of becoming a partner or member in a company or partnership through a financial investment.

Capital Balance

The amount of money in a company's equity account, not including profits or losses.