When Machine-Hours Are Used as an Overhead Cost-Allocation Base, the Most

question 151

Multiple Choice

When machine-hours are used as an overhead cost-allocation base, the most likely cause of a favorable variable overhead spending variance is ________.

• A) excessive machine breakdowns
• B) the production scheduler efficiently scheduled jobs
• C) a decline in the cost of energy
• D) strengthened demand for the product

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Definitions:

Disjunction

A logical operation yielding a truth value of true if at least one of the operands is true; often represented with the word "or" in logic.

Consistent

A property of a set of statements that allows them all to be true at the same time without contradiction.

Contingency

A forthcoming incident or situation which may occur but its certainty cannot be ascertained.

Conditional Statement

A statement in logic that involves an if-then structure, asserting that if one thing is true, then another will follow.