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If the Capacity Level Chosen to Calculate the Budgeted Fixed

question 164

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If the capacity level chosen to calculate the budgeted fixed overhead cost rate is more than the actual production, an unfavorable production-volume variance will result.


Definitions:

Consequences

Consequences refer to outcomes or effects that directly result from actions or conditions, often implying a reaction to what has been done or what has occurred.

Accomplish

To achieve or complete successfully a task, goal, or objective.

Chance

The occurrence of events without apparent cause, or the unpredictable and uncontrollable aspect of happenings.

Control

In experimental research, the practice of limiting the influence of confounding variables to determine the effect of the independent variable on the dependent variable more accurately.

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