What Is One of the Results of Fixed Overhead Being

question 108

Multiple Choice

What is one of the results of fixed overhead being made up of many items?

• A) The fixed overhead spending variance is not meaningful.
• B) It is not possible to calculate a fixed overhead volume variance.
• C) The fixed overhead volume variance will always be unfavourable.
• D) A line-by-line comparison of budgeted costs with actual costs provides more information.

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Definitions:

Compute

The process of using mathematical operations to obtain a result or solve a problem.

Cost of Goods Manufactured

The total production cost for goods completed during a given period, including labor, material, and overhead costs.

Calculate

The process of determining a numerical result or figure, typically by mathematical means.

Period

A specific timeframe for which financial statements are prepared or accounting transactions are evaluated.