The Fixed Manufacturing Overhead Budget Variance Is More Meaningful Than

question 49

True/False

The fixed manufacturing overhead budget variance is more meaningful than the volume variance for cost control purposes.

---

Definitions:

Passive Approach

A passive approach involves a non-interventionist or minimal-effort strategy of dealing with situations, often contrasted with active strategies that require direct action.

Discretionary Fiscal Policy

Discretionary Fiscal Policy involves government action to stimulate or restrain the economy via changes in taxation and spending, based on current economic conditions.

Short-run Phillips Curve

A curve illustrating the inverse relationship between the rate of inflation and the rate of unemployment, showing that lower unemployment in the near term can be associated with higher inflation.

U.S. Economic Data

Statistical information about the United States economy covering various aspects such as employment, GDP, inflation, and more, used for analysis and policy-making.