The Consumer Product Safety Commission

question 36

Multiple Choice

The Consumer Product Safety Commission:

• A) only has the authority to educate the public concerning product safety problems.
• B) uses data it gathers to set uniform product safety standards for goods such as toys and lawn mowers.
• C) can only make manufacturers voluntarily submit their products for testing if the product falls below its regulatory standards.
• D) have no enforcement powers since compliance with its regulations is left up to the manufacturer.

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Definitions:

Volume Variance

A measure used to evaluate the difference between the expected and actual production volumes.

Predetermined Overhead Rate

A rate calculated before a period begins, based on estimated overhead costs and activity levels, for assigning manufacturing overhead to products.

Variable Component

A portion of costs that varies directly with the level of production or operation activity.

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or services, based on a planned amount of cost and activity level.