Volume variance arises because of:
A. Increase in overhead rate per hour
B. Decrease in overhead rate per hour
C. Increase or decrease in actual output as compared to the budgeted output
D. Difference in budgeted overheads and actual overheads
Answer: Option C
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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