What could cause a production volume variance for fixed expenses?
A) Insurance costs on the factory rise unexpectedly during the year due to a crisis in the insurance industry.
B) The union calls for a strike of factory workers and temporary workers are hired to fill in for the striking employees.
C) The lease on the manufacturing facility is renegotiated and the lease payments increase during the year.
D) The number of units actually sold is different that the units upon which the static budget was based.
Correct Answer:
Verified
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