Respond that the following statements are TRUE or FALSE: 1) When management is investigating overhead variances, they
Question:
Respond that the following statements are TRUE or FALSE:
1) When management is investigating overhead variances, they need to further determine whether cost increases were controllable or if the cost standard needs to be updated.
2) The fixed overhead cost variance measures the difference between actual fixed overhead and budgeted fixed overhead to determine the controllable portion of total fixed overhead variance.
3) The fixed overhead cost variance measures the difference between actual fixed overhead and allocated fixed overhead.
4) The fixed overhead volume variance is essentially a cost variance.
5) If both favorable and unfavorable variances exist, then the variance obtained by netting them is always a favorable variance.
Statistics For The Life Sciences
ISBN: 9780321989581
5th Edition
Authors: Myra Samuels, Jeffrey Witmer, Andrew Schaffner