The Economic Impact of the Inability to Reach a Target

question 7

Multiple Choice

The economic impact of the inability to reach a target denominator level of activity would best be measured by which of the following?

• A) The amount of the volume variance.
• B) The contribution margin lost by failing to meet the target denominator level of activity.
• C) The amount of the fixed overhead budget variance.
• D) The amount of the variable overhead efficiency variance.

---

Definitions:

Glycohemoglobin

Also known as Hemoglobin A1c, this is a form of hemoglobin that is measured primarily to identify the average plasma glucose concentration over prolonged periods.

ESR Rate

The erythrocyte sedimentation rate (ESR) is a blood test that measures how quickly red blood cells settle at the bottom of a test tube, indicating inflammation in the body.

HIV Infection

A virus that attacks the immune system, potentially leading to Acquired Immunodeficiency Syndrome (AIDS).

Lymph Node Swelling

The enlargement of lymph nodes due to infection, inflammation, or cancer, which can be a sign of an underlying health issue.