Salvador Company Has Developed Capacity Standards The Unused Capacity Variance Is
A)There Is No Variance

question 89

Multiple Choice

Salvador Company has developed capacity standards. Information is as follows for a value-added activity: $$\begin{array} { l r } \text { Activity capacity acquired } & 60 \\\text { Activity capacity used } & 50 \\\text { Actual activity usage } & 30 \\\text { Standard fixed activity rate } & \$ 2,000\end{array}$$ The unused capacity variance is

• A)There is no variance.
• B)$60,000 favorable.
• C)$40,000 favorable.
• D)$20,000 favorable.

Understand the core aspects of Porter's Five Forces Model and its application to evaluating competition.

Identify elements of the value chain analysis and its role in identifying a company's core competencies.

Recognize different strategies for achieving competitive advantage, including response-based, cost leadership, and standardization strategies.

Understand the concept and implications of operations strategic decisions such as layout design, inventory management, and quality.

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Definitions:

Absolute Advantage

A situation in which a country, individual, or company can produce a particular good or service more efficiently than another party, using the same amount of resources.

Trade

Trade involves the exchange of goods, services, or both between parties, which can be at the domestic or international level, fostering economic interaction and integration.

Opportunity Cost

The potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Export

A good or service produced in one country and sold to buyers in another country, contributing to the selling country's gross domestic product.