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:

Withholding

The practice of deducting taxes from an employee's salary by their employer, to pay it directly to the government as a part of the employee's income tax liability.

Form 1040EZ

A simplified tax form for individuals with uncomplicated tax situations, no longer in use as of the 2018 tax year.

Interest Income

Income earned from deposit accounts or investments through the receipt of interest.

Dependent

A person, often a child or other family member, whose financial support and well-being are the responsibility of another, often affecting tax deductions.