Intermittent Operations Group Their Resources Based on

question 117

Multiple Choice

Intermittent operations group their resources based on

• A) requirements of the product
• B) similar operations or functions
• C) shape of the shop floor
• D) abilities of the labor force
• E) the number of machines

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Definitions:

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead and the applied amount, revealing how well a company utilized its fixed resources.

Fixed Overhead Budget Variance

The difference between the budgeted and actual fixed overhead costs incurred during a specified period.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs attributed to the variation in produced units.