Using Master-Budget Capacity to Allocate Budgeted Fixed Manufacturing Costs Can

question 105

Multiple Choice

Using master-budget capacity to allocate budgeted fixed manufacturing costs can result in a

• A) stable measure; avoiding the recalculation of unit costs when expected demand levels change
• B) fixed costs spread over available capacity
• C) can result in a downward demand spiral
• D) in fixed overhead costs calculated based on capacity available

---

Definitions:

Foetal Stage

The stage of development in human gestation that occurs from the ninth week after fertilization until the birth of the child.

Embryonic Stage

A critical period in prenatal development covering the first 8 weeks after fertilization, when the basic structures of the organism begin to form.

Post-Natal Stage

The period following childbirth, focusing on the mother's recovery and the baby's adaptation to life outside the womb.

Embryonic

Referring to an early developmental stage in animals and plants; in humans, it covers the first eight weeks after fertilization.