Which of the Following Is the Result of Fixed Overhead

question 66

Multiple Choice

Which of the following is the result 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:

Test Validity

The extent to which a test accurately measures what it is supposed to measure.

Reliability

The extent to which a measurement instrument yields reliable and uniform outcomes.

Validity

The degree to which an idea, inference, or measurement is substantiated and probably accurately reflects reality.

Reliability

How much a testing tool delivers steady and dependable results throughout time.