Which of the Following Is Not Correct

question 87

Multiple Choice

Which of the following is not correct?

• A) If the denominator level of activity and the standard hours allowed for the output of the period are the same, then there is no volume variance.
• B) If the denominator level of activity is greater than the standard hours allowed for the output of the period, then the volume variance is unfavorable.
• C) If the denominator level of activity is greater than the standard hours allowed for the output of the period, then the volume variance is favorable.
• D) The volume variance is the most appropriate measure of the utilization of plant facilities.

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