Volume variances are computed for which of the following costs?
A) Fixed manufacturing costs only
B) Variable selling and administrative costs only
C) Variable manufacturing and selling and administrative costs
D) Variable manufacturing costs only

Question

Quizplus · Accepted Answer

Volume variances are calculated for variable manufacturing and selling and administrative costs. Fixed manufacturing costs and variable selling and administrative costs are not considered in the calculation of volume variances as they remain constant regardless of the level of production or sales.

Volume Variances Are Computed for Which of the Following Costs