A Negative Fixed Overhead Volume Variance Can Be Caused Due

question 106

Multiple Choice

A negative fixed overhead volume variance can be caused due to the following except:

• A) Sales orders at a low level
• B) Machine breakdowns
• C) Employee inexperience
• D) Increase in utility costs

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Definitions:

Model Inputs

The variables and parameters fed into a model to simulate different scenarios and predict outcomes.

Plowback Rate

The percentage of profits a company retains and reinvests in its operations rather than distributing to shareholders as dividends.

Dividend-Payout Rate

This term represents the proportion of earnings a company pays its shareholders in dividends, showcasing a strategy of sharing profits.

P/E Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if the stock is over or underpriced.