Volume Variances Are Computed for Which of the Following Costs

question 55

Multiple Choice

Volume variances are computed for which of the following costs?

• A) Variable manufacturing costs only
• B) Fixed manufacturing costs only
• C) Variable selling and administrative costs only
• D) Variable manufacturing and selling and administrative costs

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Definitions:

Units Of Production

Units of production is a depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces.

Direct Materials Price Variance

The difference between the actual cost and the standard cost of the materials used in production, reflecting how effectively a company manages its purchasing costs.

Materials Cost Per Yard

The total cost associated with acquiring materials required to produce one yard of a product.

Yards Per Unit

A measurement indicating the amount of yardage (length) required or produced per unit of a product.