ACCA MA · Chapter 13 · Question 7 of 10
Which variance appears in a standard absorption costing operating statement but NOT in a standard marginal costing operating statement?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Fixed overhead volume variance
Explanation
Marginal costing does not absorb fixed overheads into units, so there is no volume variance; the only fixed overhead variance is expenditure (budget vs actual). Absorption costing includes the volume variance, because fixed overheads are absorbed on actual output.
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