(Appendix 3A)Which Level of Activity,if Used to Set a Predetermined

question 95

Multiple Choice

(Appendix 3A) Which level of activity,if used to set a predetermined overhead rate,may encourage managers to increase selling prices as demand falls?

• A) Budgeted level of activity.
• B) Actual level of activity.
• C) Capacity (maximum)level of activity.
• D) Normal level of activity.

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Definitions:

Circumduction

A circular movement of a limb or eye where the end follows a circular path.

Lateral Flexion

The movement of bending sideways at the waist or neck, reducing the angle between the side of the body or head and the arms or legs.

Opposition

The movement of the thumb to touch the tips of the other fingers on the same hand, enabling grasping and manipulation of objects.

Adduction

The movement of a body part toward the central axis of the body or toward another part, as in bringing arms or legs closer to the torso.