The production volume variance provides information about:
A) Sales levels
B) Variable overhead costs which vary with volume
C) Fixed overhead costs which vary with volume
D) Utilisation of capacity

Question

Quizplus · Accepted Answer

The production volume variance specifically measures the difference between the budgeted production volume and the actual production volume, indicating how well a company has utilized its production capacity. It does not directly relate to sales levels, variable overhead costs, or fixed overhead costs, but rather to how efficiently the company has used its resources to meet production targets.

The Production Volume Variance Provides Information About