When Machine-Hours Are Used as an Overhead Cost-Allocation Base, the Most

question 151

Multiple Choice

When machine-hours are used as an overhead cost-allocation base, the most likely cause of a favorable variable overhead spending variance is ________.

• A) excessive machine breakdowns
• B) the production scheduler efficiently scheduled jobs
• C) a decline in the cost of energy
• D) strengthened demand for the product

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Definitions:

Abnormal Returns

Returns on a security or portfolio that differ significantly from the expected rate, given the asset's risk level and the market's overall performance.

Spread

The difference between two prices, yields, or interest rates, commonly used in financial markets to measure the gap between bid and ask prices.

Public Issue

The creation and sale of securities on public markets.

Rights Offer

An invitation to existing shareholders to purchase additional shares in the company at a discounted price, usually to raise capital.