(Appendix 11A)The Santos Corporation Made an Error When Selecting a Denominator

question 61

Multiple Choice

(Appendix 11A) The Santos Corporation made an error when selecting a denominator level of activity and chose a much lower level than was realistic.This error would most likely result in a large:

• A)favorable variable overhead efficiency variance.
• B)favorable fixed manufacturing overhead budget variance.
• C)favorable fixed manufacturing overhead volume variance.
• D)unfavorable fixed manufacturing overhead budget variance.

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Definitions:

Organizational Culture

The collective ideals, convictions, and standards that shape the attitudes, emotions, and actions of workers inside a company.

Beliefs And Values

Core principles and standards that guide behavior and judgments in individuals or societies.

Mission

A mission refers to the fundamental purpose, objectives, or goals that guide an organization, project, or individual.

Strategy

Positions the organization in the competitive environment and implements actions to compete successfully.