The Effect of Spreading Fixed Manufacturing Costs Over a Shrinking

question 115

Multiple Choice

The effect of spreading fixed manufacturing costs over a shrinking master-budget capacity utilization amount results in ________.

• A) greater utilization of capacity
• B) increased unit costs
• C) more competitive selling prices
• D) greater demand for the product

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Definitions:

Opposable Thumbs

A thumb that can be moved freely and independently to touch the other fingers on the same hand, allowing for precise manipulation of objects.

Ozone Concentration

The measure of the amount of ozone present in a particular area of the atmosphere, critical for blocking harmful ultraviolet radiation.

Acid Rain

Precipitation that contains high levels of sulfuric or nitric acids, often resulting from the emission of sulfur dioxide and nitrogen oxides from human activities such as burning fossil fuels.

Air Pressure

The force exerted onto a surface by the weight of the air above it, which decreases as altitude increases.