The Production Volume Variance Is the Difference Between Fixed Costs

question 29

True/False

The production volume variance is the difference between fixed costs on the flexible budget and the fixed costs on the master budget.

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Definitions:

Accrual Accounting

Accounting method that records revenues and expenses when they occur, not necessarily when cash actually changes hands.

Credit

Receiving money, goods, or services on the basis of an agreement between the lender and the borrower that the loan is for a specified period of time with a specified rate of interest.

Sale

The exchange of goods or services for money or other consideration.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.