Which of the following is true?
A) A positive fixed overhead volume variance always indicated a company is company is doing a favorable job
B) A negative fixed overhead volume variance may result from a company producing more items due to an increase in market demand
C) A negative fixed overhead volume variance may result from a company producing few or items due to a decrease in market demand
D) All of the above are true

Question

Quizplus · Accepted Answer

A negative fixed overhead volume variance occurs when fewer items are produced than expected, often due to decreased market demand, leading to under-absorption of fixed overheads.

Which of the Following Is True