Fixed overhead production volume variances reflect:
A) Normal fluctuation of volume of allocation base
B) Out of control costs
C) Some problem in production that needs to be corrected
D) Inefficient productivity

Question

Quizplus · Accepted Answer

Fixed overhead production volume variances reflect the normal fluctuation of the volume of the allocation base, such as the number of units produced. It does not necessarily indicate any problem or inefficiency in production or costs that are out of control.

Fixed Overhead Production Volume Variances Reflect