Large Scale Disasters Such as Hurricane Katrina in 2005 and the Japanese

question 23

Multiple Choice

Large scale disasters such as Hurricane Katrina in 2005 and the Japanese earthquake and tsunami in 2011 can cause ________ in telephone and Internet services.

• A) Random demand fluctuations
• B) Relative demand shifts
• C) Predictable demand cycles
• D) Vertical demand configurations
• E) Organized demand patterns

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Definitions:

Variable Overhead Rate

Variable Overhead Rate is the portion of indirect manufacturing costs that varies in proportion to production volume or activity levels, such as utilities or raw materials.

Actual Production

The real quantity of goods or services produced during a specific period, as opposed to planned or projected quantities.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs attributed to a variation in produced or achieved volumes of goods.

Actual Hours

The real number of hours worked by employees, often used in comparing to budgeted or standard hours for performance analysis.