The Fixed Overhead Volume Variance Is a Volume Variance,not a Cost

question 128

True/False

The fixed overhead volume variance is a volume variance,not a cost variance.

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Definitions:

Coinsurance Clause

An insurance policy clause specifying that, if a property is not insured up to a certain percentage of its value, the owner is the bearer of part of the insurance and will not be covered for the full amount of damages.

Premium Rate

The cost of an insurance policy per unit of coverage, reflecting the likelihood of a claim being made.

Coinsurance Clause

A provision in insurance policies that requires the policyholder to bear a portion of the costs of a claim, with the insurance company paying the remainder.

Coinsurance Clause

A provision in an insurance policy that defines the percentage of the claim amount to be shared between the insurer and the insured.