The Production Volume Variance Appears When ________

question 68

Multiple Choice

The production volume variance appears when ________.

• A) the actual production volume equals the expected production volume used in computing the fixed overhead rate
• B) the actual production volume deviates from the expected production volume used in computing the fixed overhead rate
• C) the actual production volume deviates from the expected production volume used in computing the variable overhead rate
• D) the actual production volume equals the expected production volume used in computing the variable overhead rate

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Definitions:

Diseconomies Of Scale

The situation when a firm’s average total cost of producing a product increases in the long run as the firm increases the size of its plant (and, hence, its output).

Technologically Progressive

Characterized by innovative application of knowledge and technology to improve products, services, or processes.

Nondiscriminating

Nondiscriminating, in economic terms, often refers to pricing or marketing policies that do not vary between different consumers or groups, treating all participants equally.

Pure Monopolist

A market scenario where a single seller controls the entire supply of a product or service, with no close substitutes available to consumers.