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Explain Why There Is No Production-Volume Variance for Variable Manufacturing

question 20

Essay

Explain why there is no production-volume variance for variable manufacturing overhead costs.


Definitions:

Drive Theories

Psychological theories suggesting that behavior is motivated by the desire to reduce internal tension caused by unmet biological needs.

Motivation

The psychological factors or driving forces that compel or prompt an individual to act in a certain manner.

Homeostatic

Pertaining to homeostasis, which is the process by which living organisms maintain a stable internal environment despite changes in external conditions.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

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