The Variance from Standard for Factory Overhead Cost Resulting from Operating

question 18

True/False

The variance from standard for factory overhead cost resulting from operating at a level above or below 100% of normal capacity is termed volume variance.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.

Total Assets

The sum of all resources owned by a company, valued in monetary terms.

Deferral

A financial term referring to the postponement of the recognition of certain revenues or expenses to a later accounting period.