A Fixed-Overhead Volume Variance Would Normally Arise When

question 35

Multiple Choice

A fixed-overhead volume variance would normally arise when:

• A) actual hours of activity coincide with actual units of production.
• B) budgeted fixed overhead is less than (or greater than) applied fixed overhead.
• C) there is a fixed-overhead budget variance.
• D) actual fixed overhead exceeds budgeted fixed overhead.
• E) there is a variable-overhead efficiency variance.

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Definitions:

Fine-tune Organization

The process of making small adjustments to an organization's operations, structure, or strategy to improve efficiency and effectiveness.

Fraud, Deception

Intentional acts of dishonesty carried out to gain unfair or unlawful advantage.

Lack of Commitment

A situation where individuals or groups show a reluctance to dedicate effort or resources towards a particular goal or task.

Competitive Business

A company that successfully maintains or improves its position in the market by offering superior products, services, or value propositions compared to its rivals.