A Decrease in Denominator Level of Activity Will Lead to Which

question 39

Multiple Choice

A decrease in denominator level of activity will lead to which of the following?

• A) A decrease in the fixed portion of the predetermined overhead rate.
• B) An increase in the fixed portion of the predetermined overhead rate.
• C) A decrease in the variable portion of the predetermined overhead rate.
• D) An increase in the variable portion of the predetermined overhead rate.

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Definitions:

Ammonia

A colorless gas with a characteristic pungent smell, used in many industrial and cleaning products, which is toxic in high concentrations.

Urea

Urea is a nitrogenous compound produced in the liver as a waste product of protein metabolism and excreted in urine.

Beta Oxidation

A metabolic process in which fatty acid molecules are broken down in the mitochondria to generate acetyl-CoA, which enters the citric acid cycle to produce energy.

Fatty Acids

Long hydrocarbon chains that are a vital component of lipids and play an essential role in energy storage and cell structure.