Which of the following types of companies would not have a need to calculate a fixed overhead volume variance?
A) A company that uses variable costing
B) A company that uses absorption costing
C) A company that applies fixed overhead based on direct labour hours
D) A company that uses activity-based costing (ABC)

Question

Quizplus · Accepted Answer

A company that uses variable costing only considers variable costs as part of their product cost and does not allocate fixed overhead. Therefore, they would not need to calculate a fixed overhead volume variance.

Which of the Following Types of Companies Would Not Have