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

question 144

Multiple Choice

When machine-hours are used as a cost allocation base, the item MOST likely to contribute to a favourable production-volume variance is

• A)an increase in the selling price of the product.
• B)the purchase of a new manufacturing machine costing considerably less than expected.
• C)a decline in the cost of energy.
• D)strengthened demand for the product.
• E)a competitor lowering the price of a similar product.

---

Definitions:

NMR Data

Information obtained from Nuclear Magnetic Resonance spectroscopy, useful for determining molecular structure and dynamics.

Quartet

In nuclear magnetic resonance (NMR) spectroscopy, a signal that is split into four separate peaks, indicating the presence of specific atomic environments in a molecule.

Triplet

In quantum mechanics, a term often used to describe a system (such as an atomic or molecular state) that has three closely related energy levels or sub-states.

Spectral Data

Information derived from the interaction of electromagnetic radiation with matter, used to analyze and identify substances.