Which of the Following Is Indicated by a Favorable Fixed

question 8

Multiple Choice

Which of the following is indicated by a favorable fixed overhead volume variance of a manufacturing company?

• A)The creation of excess inventory
• B)The actual overhead exceeded the budgeted overhead
• C)Sales exceeded production
• D)Variable overhead costs were less than fixed overhead costs

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Definitions:

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Sales

The total revenue generated from goods or services sold by a company within a specific period.

Capital Gains

The income gained when the selling price of assets such as stocks, bonds, or real estate surpasses their original buying price.

Economic Growth

An increase in the production of goods and services in an economy over a period of time.