​The Perfect Technology Assumption Implies That _______

question 54

Multiple Choice

​The perfect technology assumption implies that _______.

• A)the equipment will work without any problems
• B)​the users understand the technology
• C)issues related to technology are ignored
• D)​issues related to scalability (high volumes) are ignored

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Definitions:

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead costs and the fixed overhead costs actually allocated to produced goods, based on standard activity levels.

Overapplied

In cost accounting, refers to a situation where the allocated manufacturing overhead is more than the actual overhead incurred.

Underapplied

A situation in which the allocated or applied costs in accounting are less than the actual costs incurred.

Standard Costing System

An accounting method that applies predetermined costs to measure the cost of goods sold and performance.