Question: the fixed OH volume variance is favourable, so this must mean that everything is OK there. Explain to management the meaning of the volume variance

the fixed OH volume variance is favourable, so this must mean that everything

is OK there. Explain to management the meaning of the volume variance and why their

observation is incorrect. (2 Mark) In addition, following on from that explanation, explain

related consequences for the firm in light of the other concerns that management has raised (2

Mark)

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