The Production-Volume Variance, Which Relates Only to Fixed Manufacturing Overhead

question 69

True/False

The production-volume variance, which relates only to fixed manufacturing overhead, exists under absorption costing but not under variable costing.

---

Definitions:

Business Combination

A transaction or other event in which an acquirer gains control of one or more businesses, often involving a merger or acquisition.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Fair Value

The estimated market price of an asset or liability, reflecting current market conditions.

Par Value

A nominal value or face value assigned to a share of stock by the company’s charter.