The production volume variance is a line item on the ________ income statement.
A) contribution approach
B) variable costing
C) absorption costing
D) absorption costing and variable costing

Question

Quizplus · Accepted Answer

The production volume variance is a variance that occurs as a result of the difference between the budgeted and actual levels of production. This variance is only relevant in absorption costing, which includes fixed overheads in product costs. Therefore, the production volume variance will only appear on the absorption costing income statement.

The Production Volume Variance Is a Line Item on the ________