What Is the Definition of Unused Capacity Variance

question 53

Multiple Choice

What is the definition of unused capacity variance?

• A)the difference in costs between activity availability and activity usage
• B)the difference in costs between actual activity level acquired and the value-added standard quantity of activity that should have been used
• C)the difference in costs between practical capacity of activity and the standard capacity of the activity
• D)the difference in costs between practical capacity and actual capacity

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Definitions:

Industrial Services

Services provided by businesses to other businesses within the industrial sector, often including maintenance, repair, and operations.

Support Products

Goods or services purchased by a business to facilitate its operations, distinct from its core offerings to its customers.

Maintenance

The process of preserving a condition or situation or the work necessary to keep something functioning or in service.

Accessory Equipment

Additional or supplemental devices or tools used to enhance or support the main functionality of a primary product or system.