The Economic Impact of the Inability to Reach a Target

question 149

Multiple Choice

The economic impact of the inability to reach a target denominator level of activity would best be measured by:

• A) the amount of the volume variance.
• B) the contribution margin lost by failing to meet the target denominator level of activity.
• C) the amount of the fixed manufacturing overhead budget variance.
• D) the amount of the variable overhead efficiency variance.

---

Definitions:

Causal Arrow

A concept used to denote the direction of cause and effect in studies and theories.

Negative Schema

Cognitive frameworks or beliefs that lead individuals to view themselves, others, and the world in a pessimistic or detrimental light.

Learned Helplessness

A condition in which individuals believe they have no control over the outcomes of events, leading to passivity and depression.

Explanatory Style

A psychological attribute that indicates how people explain to themselves why they experience a particular event, either positive or negative.