A Fixed Manufacturing Overhead Volume Variance Occurs as the Result

question 35

True/False

A fixed manufacturing overhead volume variance occurs as the result of a difference between the denominator level of activity (in hours) and the standard hours allowed for the actual output of the period.

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Definitions:

Return on Investment

A metric used to assess the profitability of an investment, calculated as the net profit of the investment divided by its cost.

Operating Assets

Resources owned by a business that are used in its day-to-day operations to generate revenue and are expected to provide benefits in the future.

Controllable Margin

A measure of profitability that represents the amount of revenue left after deducting all controllable expenses.

ROI

Return on Investment, a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.