Forward Integration and Backward Integration Are Sometimes Collectively Referred to as

question 102

Multiple Choice

Forward integration and backward integration are sometimes collectively referred to as

• A) horizontal integration.
• B) diversification.
• C) vertical integration.
• D) stuck-in-the-middle.
• E) hierarchical integration.

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Definitions:

Standard Cost System

An accounting framework where predetermined costs are used for valuing inventories and measuring cost variances.

Volume Variance

Volume variance reflects the difference between the expected number of units produced or sold and the actual units produced or sold, impacting costs and revenue.

Budget Variance

The difference between the budgeted or planned amounts and the actual amounts incurred, used for financial analysis and control.

Denominator Level

In cost accounting, it’s the level of activity used to allocate fixed costs to products or services, often representing the production capacity.