In a Two-Variance System for Analyzing Factory Overhead, a Favorable

question 6

Multiple Choice

In a two-variance system for analyzing factory overhead, a favorable volume variance could be caused by:

• A)The top salesman leaving the company.
• B)Receiving more orders than anticipated.
• C)A machine breakdown.
• D)A work slow-down by workers.

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Definitions:

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

National Debt

The net accumulation of federal budget deficits.

Rate of Unemployment

The percentage of the labor force that is jobless and actively seeking employment.

Normative Economic Statement

A statement that reflects opinions or judgments about what ought to be in economics, focusing on the desirability of certain economic policies or outcomes.