Which of the Following If Not True About the Variance-Analysis

question 105

Multiple Choice

Which of the following if not true about the variance-analysis approach?

• A)Variable costs have unused capacity.
• B)Variable costs never have any unused capacity.
• C)The detailed analysis helps managers identify and focus on the areas not operating as expected.
• D)Manages of small businesses understand their operations based on personal observations and nonfinancial measures.
• E)Managers find less value in doing additional measurements required for comprehensive analyses.

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Definitions:

Strictly Liable

Being legally responsible for damages or loss, irrespective of fault or intent.

Bailment

The transfer of possession of property from one person to another under agreement that the property will be returned or otherwise disposed of according to the terms of the agreement.

Fixture

An item of property that is attached to a building or land in such a way that it is considered legally part of the property.

Farmer

An individual or entity engaged in the practice of cultivating land, raising crops, and feeding, breeding, and raising animals or produce as part of agriculture.