Which of the Following Interpretations of an Unfavourable Fixed Overhead

question 96

Multiple Choice

Which of the following interpretations of an unfavourable fixed overhead volume variance is correct?

• A) It measures the cost of underutilising productive capacity.
• B) It is overapplied overhead.
• C) It is similar to a favourable variable overhead efficiency variance.
• D) It has no use for control purposes.

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