The Production Volume Variance Provides Information About

question 90

Multiple Choice

The production volume variance provides information about

• A) Capacity utilisation
• B) Variable overhead costs which vary with volume
• C) Fixed overhead costs which vary with volume
• D) Sales levels

---

Definitions:

Costs Expire

The concept that certain costs represent the consumption of assets over time or through use and are thus recorded as expenses.

Net Income

The total profit or loss of a business after all expenses, taxes, and costs have been deducted from total revenue.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use in financial reporting.