Which of the Following Variance(s)is(are)computed for Fixed Overhead Costs

question 56

Multiple Choice

Which of the following variance(s) is(are) computed for fixed overhead costs?

• A) production volume variance
• B) flexible budget variance
• C) efficiency variance
• D) production volume variance and flexible budget variance

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Definitions:

Inelastic

Describing a situation where the demand or supply for a good or service is not highly sensitive to changes in price.

Loan Interest

The additional amount paid by a borrower to a lender in exchange for the use of borrowed money, often expressed as an annual percentage rate.

Loan

A form of financial agreement in which a lender provides funds to a borrower with the expectation of being repaid, usually with interest, over a specified period.

Risk Involved

The potential for losing something of value or the possibility of a negative outcome in a given decision or action.