When Machine-Hours Are Used as a Cost-Allocation Base, the Item

question 106

Multiple Choice

When machine-hours are used as a cost-allocation base, the item most likely to contribute to a favorable variable overhead efficiency variance is:

• A)excessive machine breakdowns
• B)the production scheduler's impressive scheduling of machines
• C)a decline in the cost of energy
• D)strengthened demand for the product

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Definitions:

External Factors

Elements outside an organization or individual's control that can impact their performance or decision-making process.

Self-Serving Bias

A common tendency to attribute one's successes to personal qualities and failures to external factors.

Attribution

The act of explaining the causes of behaviors or events, often associating them with personal traits or external situations.

Self-Monitors

Individuals who observe and regulate their behavior in social situations to fit the norms or expectations.