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

question 167

Multiple Choice

When machine-hours are used as a cost-allocation base, the item most likely to contribute to an unfavorable production-volume variance is:

• A)a new competitor gaining market share
• B)a new manufacturing machine costing considerably more than expected
• C)an increase in the cost of energy
• D)strengthened demand for the product

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HR Forecasting Advantages

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