Which of the Following Statements Is TRUE

question 5

Multiple Choice

Which of the following statements is TRUE?

• A)The fixed manufacturing sales-volume variance is rarely zero.
• B)The difference between the allocated and the budgeted overhead is the production-volume variance.
• C)The production-volume variance arises for both fixed and variable costs.
• D)The fixed manufacturing overhead sales-volume variance can be written-off to cost of goods sold.
• E)The production-volume variance arises only for variable costs.

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Definitions:

Quota

A limit placed on the quantity of a specific good that can be imported or exported during a given timeframe, usually to protect domestic industries.

Excise Tax

A type of tax charged on specific goods, services, and activities, often with the intention of reducing their consumption or generating revenue.

Yachts

Luxury vessels designed for recreation or racing, often seen as a symbol of wealth and luxury lifestyle.

Excise Tax

A tax levied on the sale of specific goods or services, often included in the price of the item such as tobacco or alcohol.