What Is Production Volume Variance?

The production cost and production difference are also called "production capacity utilization difference" and "divide by difference". It refers to the difference in manufacturing costs caused by the actual utilization of production capacity below or exceeding normal production capacity. Due to different budgeting methods and analysis methods, there are many different meanings: The difference in childbirth between fixed manufacturing costs, see this entry. The difference in childbirth between mixed manufacturing costs refers to the difference in output of mixed manufacturing costs under a fixed budget. There are also differences between the two-division method and the three-division method. ^[1]