Which of the Following Methods Is Potentially Useful for Helping

question 66

Multiple Choice

Which of the following methods is potentially useful for helping an organization align its capital expenditures with its strategy?

• A) Multiproduct cost-volume-profit (CVP) analysis.
• B) The analytic hierarchy process (AHP).
• C) Multiple regression and correlation analysis.
• D) Linear optimization (that is, linear programming models).
• E) Six-Sigma techniques.

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Definitions:

Variable Manufacturing Costs

Expenses that vary proportionally with production volume, such as materials and labor.

Variable Costing

A costing method where only variable production costs are included in product costs, with fixed overhead costs treated as period expenses.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product and are a significant portion of the production cost.

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed costs as period costs.