Sutton Powell Studies the Sales Potential of Present and Potential

question 31

Multiple Choice

Sutton Powell studies the sales potential of present and potential customers in her territory in order to estimate each account's potential and to make the best use of her time.This process is called:

• A) customer sales planning.
• B) route reporting.
• C) territory-time allocation.
• D) account analysis.
• E) trend assessment.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred during production and the standard cost of variable overhead allocated for the actual production volume.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to the variance in the volume of production.

Fixed Component

A cost or part of a cost that remains unchanged regardless of changes in the level of output or activity.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity measure, like labor hours or machine hours.