Which of the Following Is Not a Reason That Current

question 57

Multiple Choice

Which of the following is not a reason that current period performance results may differ from the company's budget for that period?

• A)The plan may not have been followed properly.
• B)The plan may not have been well thought-out.
• C)Changing circumstances may have made the plan out of date.
• D)All of the above are reasons that actual results may differ from the company's plan.

---

Definitions:

Manufacturing Overhead-Applied

The allocation of estimated manufacturing overhead costs to individual products or job orders based on a predetermined rate.

Direct Labor Hours

The sum of hours spent by workers directly partaking in the creation of goods or provision of services.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual products or activities based on estimated costs and activity levels.

Manufacturing Overhead Cost

Indirect factory-related costs incurred when a product is manufactured, including the costs of utilities, maintenance, and property taxes.