A ________ Analysis Studies the Relationship Between Fixed and Variable

question 44

Multiple Choice

A ________ analysis studies the relationship between fixed and variable costs,sales volume,and profits.

• A)Variable cost
• B)Cost-volume-prices
• C)Cost-volume-profit
• D)Cost-variable-profit

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Definitions:

Underapplied

A situation where the allocated costs of production are less than the actual costs incurred, leading to a discrepancy in accounting records.

Overapplied

A situation where the allocated manufacturing overhead costs exceed the actual manufacturing overhead costs incurred.

Denominator Activity

The total base activity used to allocate overhead costs in cost accounting, such as total direct labor hours or machine hours available.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process, used in allocating manufacturing overhead.