Answer the Following Questions Using the Information Below

question 53

Multiple Choice

Answer the following questions using the information below:
Queanbeyan Company incurred fixed manufacturing costs of $7200 during 2018.Other information for 2018 includes:
The budgeted denominator level is 800 units.
Units produced total 1000 units.
Units sold total 950 units.
Beginning inventory was zero.
The fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold.
-What can management do to discourage production for inventory purposes?
Variant question

• A)Incorporate a carrying charge for inventory in the internal accounting system
• B)Evaluate performance over a three- to five-year period rather than a single year
• C)Evaluate non-financial measures such as units in ending inventory compared to units in sales
• D)All of these answers are correct.

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Definitions:

Endometrium

The innermost lining layer of the uterus which thickens during the menstrual cycle to prepare for potential pregnancy.

Cellular Hypertrophy

An increase in cell size, often associated with increased organ size and function, typically as a result of exercise or health conditions.

LH

Luteinizing hormone, a hormone produced by the anterior pituitary gland that triggers ovulation and stimulates the production of sex hormones.

Theca Interna

A layer of cells surrounding the ovarian follicle that works in conjunction with granulosa cells to support the development and release of an egg in females.