An Unfavourable Fixed Setup Overhead Rate Variance Could Be Due

question 67

True/False

An unfavourable fixed setup overhead rate variance could be due to higher lease costs of new setup equipment or higher salaries paid to engineers and supervisors.

---

Definitions:

Intermodal Transportation

The use of two or more modes of transportation in moving goods from origin to destination.

Operating Lease

A lease agreement that allows for the use of an asset but does not convey rights of ownership, typically used for short-term leases.

Lessor

The party in a lease agreement who owns the asset and grants the lessee the right to use the asset in exchange for rental payments.

Upkeep

The process of maintaining or preserving someone or something, or the cost involved in maintaining a property, equipment, etc.