Which of the following variances is least likely to provide useful information for making decisions, if calculated as part of a comprehensive set of variances?
A) Production volume variance
B) Variable overhead spending
C) Direct material price
D) Direct labour efficiency

Question

Quizplus · Accepted Answer

Production volume variance is least likely to provide useful decision-making information in a comprehensive set of variances because it primarily reflects the difference between the budgeted and actual volume of production, which is more about capacity utilization rather than operational efficiency or cost control.

Which of the Following Variances Is Least Likely to Provide