Respuesta :
The production-volume variance should generally not be calculated and reported for control purposes because, unless interpreted properly, it can encourage overproduction by managers to achieve a favorable volume variance.
The production volume variance measures the quantity of overhead carried out to the number of devices produced. It is the distinction between the real wide variety of gadgets produced in a length and the budgeted variety of units that must have been produced, and expanded through the budgeted overhead fee.
Production volume is a component of the economic justification of FSW in the manner that it amplifies savings from labor and processing time and distributes constant prices from licensing and capital investment.
Low-volume production generally refers to an item that has been produced in small quantities, with very little engineering, layout, or tooling funding. A low-quantity production run is often taken into consideration to be any order with less than a hundred gadgets, even though this variety can vary relying on the organization.
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