A Pencil, a Dictating Machine, and a Word Processor Might

question 96

Multiple Choice

A pencil, a dictating machine, and a word processor might compete in the same

• A) target market.
• B) generic market.
• C) product-market.
• D) Any of the above.
• E) None of the above.

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Definitions:

Budget Variance

The difference between the budgeted or planned amount of expense or revenue and the actual amount incurred or received.

Denominator Activity

The level of activity used to compute a predetermined overhead rate, representing the total amount of absorption base that is expected to be utilized.

Efficiency Variances

Refers to the differences between the actual and standard costs attributable to efficiency in using resources, often analyzed in labor and variable overhead.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a chosen activity base.