Given the Following Data

question 114

Multiple Choice

Given the following data:
Return on investment (ROI) is:

• A) 30%
• B) 5%
• C) 20%
• D) 12%

Identify the factors that lead to increases or decreases in market demand.

Comprehend how expectations about future prices affect current demand.

Understand the law of supply and its effect on production levels as prices change.

Comprehend the law of demand and its manifestation through the inverse relationship between price and quantity demanded.

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Definitions:

Variable Factory Overhead

Costs in the manufacturing process that fluctuate with production volume, such as materials and labor directly involved in production.

Controllable Variance

The difference between actual costs and budgeted costs that a manager has direct control over in a given period.

Favorable Volume Variances

Differences between the expected volume of production or sales and the actual volume that lead to lower costs or higher profits than planned.

Production Capacity

The maximum output that an organization can produce in a given period under normal working conditions, considering available resources.