The production volume variance provides information about:
A) Capacity utilization
B) Variable overhead costs which vary with volume
C) Fixed overhead costs which vary with volume
D) Sales levels

Question

Quizplus · Accepted Answer

The production volume variance measures the difference between the budgeted production volume and the actual production volume, primarily reflecting how well a company utilizes its production capacity. It does not directly relate to variable overhead costs, fixed overhead costs, or sales levels.

The Production Volume Variance Provides Information About