A negative fixed overhead volume variance can be caused due to the following except
A) sales orders at a low level
B) machine breakdowns
C) employee inexperience
D) increase in utility costs

Question

Quizplus · Accepted Answer

The fixed overhead volume variance measures the difference between the actual number of units produced and the budgeted number of units. It is caused by fluctuations in production volume. Options A, B, and C are all valid reasons for a negative fixed overhead volume variance. However, an increase in utility costs would be a cost variance, not a volume variance.

A Negative Fixed Overhead Volume Variance Can Be Caused Due