If Your Boss Needs 100 Copies of a Document and Your

question 336

Multiple Choice

If your boss needs 100 copies of a document and your copy machine is broken, driving to a copy center to accomplish your goal would be an example of a(n) __________ response.

• A)escape
• B)displacement
• C)circumvention
• D)withdrawal

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Definitions:

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.

Denominator Activity Level

A term used in cost accounting to represent the total activity or volume that is used to allocate fixed costs to units of output.