The Fixed Overhead Volume Variance

question 44

Multiple Choice

The fixed overhead volume variance

• A) is useless, as it does not serve a control purpose. Rather, it is calculated only as a difference between total fixed overhead variance and fixed overhead budget variance.
• B) is useless for control purposes, but allows managers to estimate capacity costs.
• C) is useless for control purposes, but useful for product costing purposes.
• D) is useful only when conducting two-way overhead variance analyses.

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Definitions:

External Locus of Control

A psychological concept referring to an individual's belief that external forces, beyond their personal control, significantly influence their life events and outcomes.

Type A Personality

A behavior pattern characterized by competitiveness, urgency, aggression, and a constant struggle to achieve more in less time.

Optimism

The tendency to maintain a generally hopeful outlook and to expect positive outcomes.

Type A Personality

A personality type characterized by competitiveness, urgency, aggression, and a constant sense of urgency.