The variance least significant for purposes of controlling costs is the
A)material quantity variance.
B)variable overhead efficiency variance.
C)fixed overhead spending variance.
D)fixed overhead volume variance.

Question

Quizplus · Accepted Answer

The fixed overhead volume variance is less significant for controlling costs because it relates to the difference between budgeted and actual production levels, which is less controllable compared to other variances that directly relate to resource usage and spending.

The Variance Least Significant for Purposes of Controlling Costs Is