The Fixed Overhead Volume Variance

question 80

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.

---

Definitions:

Negative Outcomes

Unfavorable or adverse results that may arise from a decision, action, or situation, impacting well-being or progress.

Synaptic Pruning

The process by which extra neurons and synaptic connections are eliminated to increase the efficiency of neuronal transmissions.

Adolescence

A developmental stage between childhood and adulthood characterized by significant physical, psychological, and social changes.

Childhood

The period in human development that extends from birth until adolescence.