Indicate Whether Each of the Following Statements Is True or False

question 81

Short Answer

Indicate whether each of the following statements is true or false.
The difference between the actual fixed costs and budgeted fixed costs is the spending variance.______
For fixed costs,there is no flexible budget variance.______
Companies generally do not calculate a volume variance for fixed overhead costs.______
The volume variance is the difference between budgeted fixed cost and the applied fixed cost for the period.______
If the amount of fixed overhead applied to production is greater than the budgeted fixed overhead,the result is an unfavorable overhead volume variance.______

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Definitions:

Par Value

The face value of a bond or stock, representing the amount to be returned to the bondholder at maturity or the value assigned to a share of stock for accounting purposes.

Stock Split

A corporate action to increase the number of shares, reducing the price per share correspondingly without changing the market capitalization.

Par Value

A nominal value given to a security or stock specified by the issuing company, which may not necessarily reflect its actual market value.

Dividends Payable

A liability account that records the amount of dividends that a company has declared but not yet paid to its shareholders.