The Unfavorable Volume Variance May Be Due to All of the Following

question 104

Multiple Choice

The unfavorable volume variance may be due to all of the following factors except

• A) failure to maintain an even flow of work
• B) machine breakdowns
• C) unexpected increases in the cost of utilities
• D) failure to obtain enough sales orders

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Definitions:

Capacity

Capacity refers to the maximum level of output that a company can sustain to produce a product or service, considering available resources.

Inventory

The goods and materials that a business holds for the ultimate goal of resale, production, or utilization.

Network Design Decisions

Strategic choices regarding the configuration and management of a supply chain network, including the location of facilities and the flow of goods.

Capacity Allocation

The process of distributing available resources or production capabilities among various tasks, projects, or departments to optimize efficiency.