Use the Following Information for the Next 3 Questions

question 138

Multiple Choice

Use the following information for the next 3 questions.
General Mtg. Co. budgeted fixed overhead costs of $25,000 per quarter and 1,000 units per quarter in its normal absorption costing system. Any volume variance is carried forward and closed at year end. The company experienced the following activity:
-The volume variance was favorable in quarter(s) ?

• A) 2, 3, and 4
• B) 2 and 3
• C) 3 and 4
• D) 3

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Definitions:

Non-Strategic

Decisions or actions taken without consideration of the competitive context or longer-term objectives.

Sequential Labor Negotiation

A process where labor negotiations or discussions are conducted in a series or sequence, typically one after another.

Commit Strategy

A decision-making approach where a company decides on and adheres to a specific course of action, even in the face of changing circumstances.

Disagreement Value

The worth or specific outcome that parties in a negotiation anticipate they could receive if they fail to come to an agreement and decide to pursue other options.