A negative fixed overhead volume variance can be caused due to the following except:
A) Sales orders at a low level
B) Machine breakdowns
C) Employee inexperience
D) Increase in utility costs

Question

Quizplus · Accepted Answer

A negative fixed overhead volume variance is caused when the actual level of output is lower than the budgeted level of output, resulting in underutilization of fixed overhead resources. This can occur due to factors such as low sales volume, machine breakdowns, and employee inexperience. However, an increase in utility costs would not directly affect the volume of output and therefore would not be a cause of a negative fixed overhead volume variance.

A Negative Fixed Overhead Volume Variance Can Be Caused Due