Which one of the following standard cost variances is not available when analyzing batch-related manufacturing overhead costs using an activity-based cost (ABC) system?
A) Production-volume variance.
B) Variable setup spending variance.
C) Fixed spending variance.
D) Fixed flexible-budget variance.
E) Sales volume variance.

Question

Quizplus · Accepted Answer

Sales volume variance is related to the difference between the actual and budgeted sales in terms of the number of units sold or revenue, which is not directly associated with analyzing batch-related manufacturing overhead costs in an activity-based costing (ABC) system. ABC focuses on the costs of activities necessary for production, not on sales volume.

Which One of the Following Standard Cost Variances Is Not