An Advantage of Using a Practical Capacity-Based Allocation Rate Is

question 16

Multiple Choice

An advantage of using a practical capacity-based allocation rate is:

• A)It does not change across products.
• B)It spreads all capacity costs over budgeted, rather than actual, volume.
• C)When there is idle capacity, capacity costs are spread over a smaller production volume.
• D)It does not change across periods.
• E)All of the above are advantages of using a practical capacity-based allocation rate.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that becomes associated with a conditioned stimulus through conditioning.

Dentist's Drill

A tool used by dentists to remove decay from teeth and prepare them for fillings.

Cringing

A physical or emotional reaction of discomfort, embarrassment, or fear, often characterized by shrinking back or cowering.

Classical Conditioning

The procedure of learning by which two stimuli are frequently paired, causing a response initially prompted by the second stimulus to ultimately be prompted by the first stimulus.