Fixed Overhead Costs Are Not Expected to Vary with Production

question 73

Multiple Choice

Fixed overhead costs are not expected to vary with production volumes. Therefore, production volume variances

• A) Do not exist in most organisations
• B) Exist only if production volume is higher than anticipated
• C) Exist only if production volume is lower than expected
• D) Exist because of estimates in the calculation of the overhead allocation rate

---

Definitions:

Thalamus

A structure in the forebrain involved in relaying information, especially to the cerebral cortex.

Medulla Oblongata

A section at the lower part of the brainstem controlling vital life functions such as breathing and heart rate.

Auditory Information

Data or knowledge received and processed through the sense of hearing.

Pons

A structure in the hindbrain that acts as a neural relay center, facilitating the crossover of information between the left side of the body and the right side of the brain and vice versa. It is also involved in balance and in the processing of both visual and auditory information.