Monday, June 13, 2011

When machine-hours are used as a cost-allocation base, the item MOST likely to contribute to an unfavorable production-volume variance is

ACCOUNTING

Multiple Choice

When machine-hours are used as a cost-allocation base, the item MOST likely to contribute to an unfavorable production-volume variance is

a. a new competitor gaining market share

b. a new manufacturing machine costing considerably more than expected

c. an increase in the cost of energy

d. strengthened demand for the product

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