More Vulnerable to Disruption If a Failure to Supply Occurs

question 39

Multiple Choice

More vulnerable to disruption if a failure to supply occurs is a disadvantage of:

• A) Single-sourcing
• B) Multi-sourcing

Identify and critique logical support for conclusions.

Understand and analyze the structure of arguments.

Distinguish between deductive and inductive reasoning.

Evaluate the strength of premises in supporting conclusions.

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Definitions:

Variable Manufacturing Overhead

Costs that fluctuate with production volume, such as indirect materials, indirect labor, and other expenses that increase or decrease as production levels change.

Fixed Manufacturing Overhead

Costs related to production that do not vary with the level of output, including salaries of permanent staff and rent of factory premises.

Budget Variance

The difference between the actual fixed overhead costs and the budgeted fixed overhead costs for the period.

Applied

Refers to the process of allocating or assigning costs to a specific cost object in a manner that is consistent with the usage or benefits derived from it.