Because It Is a Volume Variance,the Fixed Overhead Volume Variance

question 153

True/False

Because it is a volume variance,the fixed overhead volume variance explains why fixed overhead is underallocated or overallocated.

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Definitions:

Alternatives

Different options or strategies available for achieving a specific goal or solving a problem.

Relevant

Pertinent or directly connected to the matter at hand, especially in the context of decision-making where only factors that affect the decision are considered.

Avoidable Cost

Expenses that can be eliminated if a particular decision is made or if a business operation is discontinued.

Sunk Cost

Costs that have already been incurred and cannot be recovered or altered by any future action.