What Is the Capacity Variance Composed of Aside from the Unused

question 93

Multiple Choice

What is the capacity variance composed of aside from the unused capacity variance?

• A)the activity volume variance
• B)the used capacity variance
• C)the activity benchmark
• D)the value-added standard

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Definitions:

Efficient

Efficiency refers to the optimal production and distribution of resources in a way that best meets the needs and desires of consumers.

Scarce Resources

Natural, human, and capital resources that are limited in supply and can be used for the production of goods and services.

Bowed Outward

Refers to the shape of a production possibility frontier that indicates increasing opportunity costs for producing two goods.

Opportunity Cost

The cost of foregone alternatives; the value of the best alternative given up when a decision is made to choose one option over another.