The Fixed Manufacturing Overhead Volume Variance Is Due To

question 32

Multiple Choice

The fixed manufacturing overhead volume variance is due to:

• A) inefficient or efficient use of whatever the denominator activity is.
• B) inefficient or efficient use of overhead resources.
• C) a difference between the denominator activity and the standard hours allowed for the actual output of the period.
• D) a shift in the amount of hours required to produce the actual output.

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Definitions:

Purchasing-power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine the relative value of the currencies.

Currency

The system of money in general use in a particular country, used for buying and selling goods and services.

Foreign Countries

Nations other than one's own, especially when considered as the context for international trade, diplomacy, or cultural exchange.

Purchasing-power Parity

A theory that states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.