Asked by Mitchell Kramer on May 18, 2024
Verified
Volume variance measures the use of fixed factory overhead resources.
Volume Variance
A measure used in costing to indicate the difference between expected production volumes and the actual volumes produced, affecting costs.
Fixed Factory Overhead
Indirect, consistent costs associated with operating a manufacturing facility, such as salaries of supervisors and rent.
- Determine the categories of variance analysis and their pertinence to the administration of overhead costs.
Verified Answer
B4
BuddiesCode 4GamingMay 21, 2024
Final Answer :
True
Explanation :
Volume variance is a measure of how efficiently a company uses its fixed factory overhead resources, and is directly related to the level of production activity. Therefore, it is true that volume variance measures the use of fixed factory overhead resources.
Learning Objectives
- Determine the categories of variance analysis and their pertinence to the administration of overhead costs.
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