SlideShare a Scribd company logo
1 of 1
Which of the following statements is correct about interpreting the fixed overhead variances?
The budget variance is the real control variance for fixed overhead.
A volume variance results when actual fixed overhead is different from the standard inputs
allowed for actual output.
The efficiency variance reveals the efficient or inefficient use of fixed overhead.
The budget variance is the real control variance for fixed overhead.
A volume variance results when actual fixed overhead is different from the standard inputs
allowed for actual output.
The efficiency variance reveals the efficient or inefficient use of fixed overhead.
Solution
Answer:
Fixed overhead variances is the difference between budgeted fixed overhead and actual fixed
overheads.
Hence The budget variance is the real control variance for fixed overhead.

More Related Content

Similar to Which of the following statements is correct about interpreting the fi.docx

Cost-Volume-Profit Analysis6©Getty ImagesComstock .docx
Cost-Volume-Profit  Analysis6©Getty ImagesComstock .docxCost-Volume-Profit  Analysis6©Getty ImagesComstock .docx
Cost-Volume-Profit Analysis6©Getty ImagesComstock .docx
faithxdunce63732
 
Ca chap 13 standard costing&variance analysis(2)
Ca chap 13 standard costing&variance analysis(2)Ca chap 13 standard costing&variance analysis(2)
Ca chap 13 standard costing&variance analysis(2)
DSDEVDA
 
Pcm Mngt Acctg Budgetary Control
Pcm   Mngt Acctg   Budgetary ControlPcm   Mngt Acctg   Budgetary Control
Pcm Mngt Acctg Budgetary Control
RMS
 
Discounted measures
Discounted measures Discounted measures
Discounted measures
Huma Ilyas
 

Similar to Which of the following statements is correct about interpreting the fi.docx (20)

Understanding SAP production order variance
Understanding SAP production order varianceUnderstanding SAP production order variance
Understanding SAP production order variance
 
ACCOUNTING PRODMA BANA REVIEWER for class
ACCOUNTING PRODMA BANA REVIEWER for classACCOUNTING PRODMA BANA REVIEWER for class
ACCOUNTING PRODMA BANA REVIEWER for class
 
Cost-Volume-Profit Analysis6©Getty ImagesComstock .docx
Cost-Volume-Profit  Analysis6©Getty ImagesComstock .docxCost-Volume-Profit  Analysis6©Getty ImagesComstock .docx
Cost-Volume-Profit Analysis6©Getty ImagesComstock .docx
 
Standard costing
Standard costingStandard costing
Standard costing
 
aaa aaa variance analysis.ppt
aaa aaa   variance  analysis.pptaaa aaa   variance  analysis.ppt
aaa aaa variance analysis.ppt
 
Ca chap 13 standard costing&variance analysis(2)
Ca chap 13 standard costing&variance analysis(2)Ca chap 13 standard costing&variance analysis(2)
Ca chap 13 standard costing&variance analysis(2)
 
Costi Industriali e Costi Variabili: 4. I vantaggi dell’ approccio della Cont...
Costi Industriali e Costi Variabili: 4. I vantaggi dell’ approccio della Cont...Costi Industriali e Costi Variabili: 4. I vantaggi dell’ approccio della Cont...
Costi Industriali e Costi Variabili: 4. I vantaggi dell’ approccio della Cont...
 
Variances with examples
Variances with examplesVariances with examples
Variances with examples
 
Pcm Mngt Acctg Budgetary Control
Pcm   Mngt Acctg   Budgetary ControlPcm   Mngt Acctg   Budgetary Control
Pcm Mngt Acctg Budgetary Control
 
Management Accounting Unit V.ppt
Management Accounting Unit V.pptManagement Accounting Unit V.ppt
Management Accounting Unit V.ppt
 
Break even analysis- A Comprehensive and Clear Description
Break even analysis- A Comprehensive and Clear DescriptionBreak even analysis- A Comprehensive and Clear Description
Break even analysis- A Comprehensive and Clear Description
 
costing.PPTX
costing.PPTXcosting.PPTX
costing.PPTX
 
Discounted measures
Discounted measures Discounted measures
Discounted measures
 
LEVERAGE ANALYSIS BY NISCHAL CHOUDHARY
LEVERAGE ANALYSIS BY NISCHAL CHOUDHARYLEVERAGE ANALYSIS BY NISCHAL CHOUDHARY
LEVERAGE ANALYSIS BY NISCHAL CHOUDHARY
 
LEVERAGES.pptx
LEVERAGES.pptxLEVERAGES.pptx
LEVERAGES.pptx
 
Managment accounting
Managment accountingManagment accounting
Managment accounting
 
NSU EMB 501 Accounting Ch22
NSU EMB 501 Accounting Ch22NSU EMB 501 Accounting Ch22
NSU EMB 501 Accounting Ch22
 
Marginal cost
Marginal costMarginal cost
Marginal cost
 
Changes in net working capital | Finance
Changes in net working capital | FinanceChanges in net working capital | Finance
Changes in net working capital | Finance
 
Leverage
LeverageLeverage
Leverage
 

More from rtodd19

Please identify hardware device(s) (peripherals) and describe how a NO.docx
Please identify hardware device(s) (peripherals) and describe how a NO.docxPlease identify hardware device(s) (peripherals) and describe how a NO.docx
Please identify hardware device(s) (peripherals) and describe how a NO.docx
rtodd19
 
please list two of the devices provided by the text (or other devices-.docx
please list two of the devices provided by the text (or other devices-.docxplease list two of the devices provided by the text (or other devices-.docx
please list two of the devices provided by the text (or other devices-.docx
rtodd19
 
Please I need this answered with refrences - Thanks In a database- to.docx
Please I need this answered with refrences - Thanks In a database- to.docxPlease I need this answered with refrences - Thanks In a database- to.docx
Please I need this answered with refrences - Thanks In a database- to.docx
rtodd19
 
Please help- thanks- Many government agencies and other organizations.docx
Please help- thanks- Many government agencies and other organizations.docxPlease help- thanks- Many government agencies and other organizations.docx
Please help- thanks- Many government agencies and other organizations.docx
rtodd19
 
Please explain Advanced Persistent Threat!SolutionAnswer- An advanced.docx
Please explain Advanced Persistent Threat!SolutionAnswer- An advanced.docxPlease explain Advanced Persistent Threat!SolutionAnswer- An advanced.docx
Please explain Advanced Persistent Threat!SolutionAnswer- An advanced.docx
rtodd19
 
Please explain--- a) why SO2 (g) and H2O (l) formed instead of H2 (g)-.docx
Please explain--- a) why SO2 (g) and H2O (l) formed instead of H2 (g)-.docxPlease explain--- a) why SO2 (g) and H2O (l) formed instead of H2 (g)-.docx
Please explain--- a) why SO2 (g) and H2O (l) formed instead of H2 (g)-.docx
rtodd19
 
Please don-'t copy from an outside source Briefly discuss the distribu.docx
Please don-'t copy from an outside source Briefly discuss the distribu.docxPlease don-'t copy from an outside source Briefly discuss the distribu.docx
Please don-'t copy from an outside source Briefly discuss the distribu.docx
rtodd19
 
Please distinguish between a malware and a virus- How are they same an.docx
Please distinguish between a malware and a virus- How are they same an.docxPlease distinguish between a malware and a virus- How are they same an.docx
Please distinguish between a malware and a virus- How are they same an.docx
rtodd19
 
Please answer part c of the question- Thank you- The International Ato.docx
Please answer part c of the question- Thank you- The International Ato.docxPlease answer part c of the question- Thank you- The International Ato.docx
Please answer part c of the question- Thank you- The International Ato.docx
rtodd19
 
Pictorialize a human being as a computer system-SolutionThe human nerv.docx
Pictorialize a human being as a computer system-SolutionThe human nerv.docxPictorialize a human being as a computer system-SolutionThe human nerv.docx
Pictorialize a human being as a computer system-SolutionThe human nerv.docx
rtodd19
 
Personal Trainer- Inc- owns and operates fitness centers in a dozen Mi.docx
Personal Trainer- Inc- owns and operates fitness centers in a dozen Mi.docxPersonal Trainer- Inc- owns and operates fitness centers in a dozen Mi.docx
Personal Trainer- Inc- owns and operates fitness centers in a dozen Mi.docx
rtodd19
 
Peruse the readings by Bennis and Nanus- Schein- and Ulrich and Lake-.docx
Peruse the readings by Bennis and Nanus- Schein- and Ulrich and Lake-.docxPeruse the readings by Bennis and Nanus- Schein- and Ulrich and Lake-.docx
Peruse the readings by Bennis and Nanus- Schein- and Ulrich and Lake-.docx
rtodd19
 
Why do some converging technologies raise special ethical and social i.docx
Why do some converging technologies raise special ethical and social i.docxWhy do some converging technologies raise special ethical and social i.docx
Why do some converging technologies raise special ethical and social i.docx
rtodd19
 
Why are concentrated interests and diffuse costs important in predicti.docx
Why are concentrated interests and diffuse costs important in predicti.docxWhy are concentrated interests and diffuse costs important in predicti.docx
Why are concentrated interests and diffuse costs important in predicti.docx
rtodd19
 

More from rtodd19 (20)

Please identify hardware device(s) (peripherals) and describe how a NO.docx
Please identify hardware device(s) (peripherals) and describe how a NO.docxPlease identify hardware device(s) (peripherals) and describe how a NO.docx
Please identify hardware device(s) (peripherals) and describe how a NO.docx
 
please list two of the devices provided by the text (or other devices-.docx
please list two of the devices provided by the text (or other devices-.docxplease list two of the devices provided by the text (or other devices-.docx
please list two of the devices provided by the text (or other devices-.docx
 
Please I need this answered with refrences - Thanks In a database- to.docx
Please I need this answered with refrences - Thanks In a database- to.docxPlease I need this answered with refrences - Thanks In a database- to.docx
Please I need this answered with refrences - Thanks In a database- to.docx
 
Please help- thanks- Many government agencies and other organizations.docx
Please help- thanks- Many government agencies and other organizations.docxPlease help- thanks- Many government agencies and other organizations.docx
Please help- thanks- Many government agencies and other organizations.docx
 
Please explain Advanced Persistent Threat!SolutionAnswer- An advanced.docx
Please explain Advanced Persistent Threat!SolutionAnswer- An advanced.docxPlease explain Advanced Persistent Threat!SolutionAnswer- An advanced.docx
Please explain Advanced Persistent Threat!SolutionAnswer- An advanced.docx
 
Please explain--- a) why SO2 (g) and H2O (l) formed instead of H2 (g)-.docx
Please explain--- a) why SO2 (g) and H2O (l) formed instead of H2 (g)-.docxPlease explain--- a) why SO2 (g) and H2O (l) formed instead of H2 (g)-.docx
Please explain--- a) why SO2 (g) and H2O (l) formed instead of H2 (g)-.docx
 
Please don-'t copy from an outside source Briefly discuss the distribu.docx
Please don-'t copy from an outside source Briefly discuss the distribu.docxPlease don-'t copy from an outside source Briefly discuss the distribu.docx
Please don-'t copy from an outside source Briefly discuss the distribu.docx
 
Please distinguish between a malware and a virus- How are they same an.docx
Please distinguish between a malware and a virus- How are they same an.docxPlease distinguish between a malware and a virus- How are they same an.docx
Please distinguish between a malware and a virus- How are they same an.docx
 
Please answer part c of the question- Thank you- The International Ato.docx
Please answer part c of the question- Thank you- The International Ato.docxPlease answer part c of the question- Thank you- The International Ato.docx
Please answer part c of the question- Thank you- The International Ato.docx
 
Pictorialize a human being as a computer system-SolutionThe human nerv.docx
Pictorialize a human being as a computer system-SolutionThe human nerv.docxPictorialize a human being as a computer system-SolutionThe human nerv.docx
Pictorialize a human being as a computer system-SolutionThe human nerv.docx
 
Personal Trainer- Inc- owns and operates fitness centers in a dozen Mi.docx
Personal Trainer- Inc- owns and operates fitness centers in a dozen Mi.docxPersonal Trainer- Inc- owns and operates fitness centers in a dozen Mi.docx
Personal Trainer- Inc- owns and operates fitness centers in a dozen Mi.docx
 
Peruse the readings by Bennis and Nanus- Schein- and Ulrich and Lake-.docx
Peruse the readings by Bennis and Nanus- Schein- and Ulrich and Lake-.docxPeruse the readings by Bennis and Nanus- Schein- and Ulrich and Lake-.docx
Peruse the readings by Bennis and Nanus- Schein- and Ulrich and Lake-.docx
 
Why do some authors view investment cash flow sensitivity as a symptom.docx
Why do some authors view investment cash flow sensitivity as a symptom.docxWhy do some authors view investment cash flow sensitivity as a symptom.docx
Why do some authors view investment cash flow sensitivity as a symptom.docx
 
Why do some converging technologies raise special ethical and social i.docx
Why do some converging technologies raise special ethical and social i.docxWhy do some converging technologies raise special ethical and social i.docx
Why do some converging technologies raise special ethical and social i.docx
 
Why do the outer stars in our galaxy not slow down- as Keplers laws of.docx
Why do the outer stars in our galaxy not slow down- as Keplers laws of.docxWhy do the outer stars in our galaxy not slow down- as Keplers laws of.docx
Why do the outer stars in our galaxy not slow down- as Keplers laws of.docx
 
Why are concentrated interests and diffuse costs important in predicti.docx
Why are concentrated interests and diffuse costs important in predicti.docxWhy are concentrated interests and diffuse costs important in predicti.docx
Why are concentrated interests and diffuse costs important in predicti.docx
 
Who are organizational stakeholders and what types of responsibilities.docx
Who are organizational stakeholders and what types of responsibilities.docxWho are organizational stakeholders and what types of responsibilities.docx
Who are organizational stakeholders and what types of responsibilities.docx
 
Who are the principle stake holders of the company- Did Dole treat the.docx
Who are the principle stake holders of the company- Did Dole treat the.docxWho are the principle stake holders of the company- Did Dole treat the.docx
Who are the principle stake holders of the company- Did Dole treat the.docx
 
Which type of network covers a contiguous geographic area- such as an.docx
Which type of network covers a contiguous geographic area- such as an.docxWhich type of network covers a contiguous geographic area- such as an.docx
Which type of network covers a contiguous geographic area- such as an.docx
 
Which space is the most abundant in 1-0 M of wak acid HCN solution- As.docx
Which space is the most abundant in 1-0 M of wak acid HCN solution- As.docxWhich space is the most abundant in 1-0 M of wak acid HCN solution- As.docx
Which space is the most abundant in 1-0 M of wak acid HCN solution- As.docx
 

Recently uploaded

MSc Ag Genetics & Plant Breeding: Insights from Previous Year JNKVV Entrance ...
MSc Ag Genetics & Plant Breeding: Insights from Previous Year JNKVV Entrance ...MSc Ag Genetics & Plant Breeding: Insights from Previous Year JNKVV Entrance ...
MSc Ag Genetics & Plant Breeding: Insights from Previous Year JNKVV Entrance ...
Krashi Coaching
 
Financial Accounting IFRS, 3rd Edition-dikompresi.pdf
Financial Accounting IFRS, 3rd Edition-dikompresi.pdfFinancial Accounting IFRS, 3rd Edition-dikompresi.pdf
Financial Accounting IFRS, 3rd Edition-dikompresi.pdf
MinawBelay
 

Recently uploaded (20)

MSc Ag Genetics & Plant Breeding: Insights from Previous Year JNKVV Entrance ...
MSc Ag Genetics & Plant Breeding: Insights from Previous Year JNKVV Entrance ...MSc Ag Genetics & Plant Breeding: Insights from Previous Year JNKVV Entrance ...
MSc Ag Genetics & Plant Breeding: Insights from Previous Year JNKVV Entrance ...
 
demyelinated disorder: multiple sclerosis.pptx
demyelinated disorder: multiple sclerosis.pptxdemyelinated disorder: multiple sclerosis.pptx
demyelinated disorder: multiple sclerosis.pptx
 
Financial Accounting IFRS, 3rd Edition-dikompresi.pdf
Financial Accounting IFRS, 3rd Edition-dikompresi.pdfFinancial Accounting IFRS, 3rd Edition-dikompresi.pdf
Financial Accounting IFRS, 3rd Edition-dikompresi.pdf
 
Championnat de France de Tennis de table/
Championnat de France de Tennis de table/Championnat de France de Tennis de table/
Championnat de France de Tennis de table/
 
IPL Online Quiz by Pragya; Question Set.
IPL Online Quiz by Pragya; Question Set.IPL Online Quiz by Pragya; Question Set.
IPL Online Quiz by Pragya; Question Set.
 
philosophy and it's principles based on the life
philosophy and it's principles based on the lifephilosophy and it's principles based on the life
philosophy and it's principles based on the life
 
Navigating the Misinformation Minefield: The Role of Higher Education in the ...
Navigating the Misinformation Minefield: The Role of Higher Education in the ...Navigating the Misinformation Minefield: The Role of Higher Education in the ...
Navigating the Misinformation Minefield: The Role of Higher Education in the ...
 
Features of Video Calls in the Discuss Module in Odoo 17
Features of Video Calls in the Discuss Module in Odoo 17Features of Video Calls in the Discuss Module in Odoo 17
Features of Video Calls in the Discuss Module in Odoo 17
 
Capitol Tech Univ Doctoral Presentation -May 2024
Capitol Tech Univ Doctoral Presentation -May 2024Capitol Tech Univ Doctoral Presentation -May 2024
Capitol Tech Univ Doctoral Presentation -May 2024
 
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
 
Word Stress rules esl .pptx
Word Stress rules esl               .pptxWord Stress rules esl               .pptx
Word Stress rules esl .pptx
 
PSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptxPSYPACT- Practicing Over State Lines May 2024.pptx
PSYPACT- Practicing Over State Lines May 2024.pptx
 
REPRODUCTIVE TOXICITY STUDIE OF MALE AND FEMALEpptx
REPRODUCTIVE TOXICITY  STUDIE OF MALE AND FEMALEpptxREPRODUCTIVE TOXICITY  STUDIE OF MALE AND FEMALEpptx
REPRODUCTIVE TOXICITY STUDIE OF MALE AND FEMALEpptx
 
An Overview of the Odoo 17 Knowledge App
An Overview of the Odoo 17 Knowledge AppAn Overview of the Odoo 17 Knowledge App
An Overview of the Odoo 17 Knowledge App
 
Mattingly "AI and Prompt Design: LLMs with Text Classification and Open Source"
Mattingly "AI and Prompt Design: LLMs with Text Classification and Open Source"Mattingly "AI and Prompt Design: LLMs with Text Classification and Open Source"
Mattingly "AI and Prompt Design: LLMs with Text Classification and Open Source"
 
Dementia (Alzheimer & vasular dementia).
Dementia (Alzheimer & vasular dementia).Dementia (Alzheimer & vasular dementia).
Dementia (Alzheimer & vasular dementia).
 
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
Removal Strategy _ FEFO _ Working with Perishable Products in Odoo 17
 
ANTI PARKISON DRUGS.pptx
ANTI         PARKISON          DRUGS.pptxANTI         PARKISON          DRUGS.pptx
ANTI PARKISON DRUGS.pptx
 
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH FORM 50 CÂU TRẮC NGHI...
 
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
24 ĐỀ THAM KHẢO KÌ THI TUYỂN SINH VÀO LỚP 10 MÔN TIẾNG ANH SỞ GIÁO DỤC HẢI DƯ...
 

Which of the following statements is correct about interpreting the fi.docx

  • 1. Which of the following statements is correct about interpreting the fixed overhead variances? The budget variance is the real control variance for fixed overhead. A volume variance results when actual fixed overhead is different from the standard inputs allowed for actual output. The efficiency variance reveals the efficient or inefficient use of fixed overhead. The budget variance is the real control variance for fixed overhead. A volume variance results when actual fixed overhead is different from the standard inputs allowed for actual output. The efficiency variance reveals the efficient or inefficient use of fixed overhead. Solution Answer: Fixed overhead variances is the difference between budgeted fixed overhead and actual fixed overheads. Hence The budget variance is the real control variance for fixed overhead.