Which Statement Is True Concerning the Fixed Overhead Production Efficiency

question 79

Multiple Choice

Which statement is true concerning the fixed overhead production efficiency variance?

• A)The production efficiency variance exists as fixed costs are assumed to vary inversely with volume.
• B)The production efficiency variance exists as fixed costs are assumed to vary along with volume.
• C)The production efficiency variance exists as fixed costs are assumed to vary exponentially with volume.
• D)The production efficiency variance does not exist as fixed costs are assumed not to vary with volume.

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