If the Volume of Output of a Factory for the Month

question 1

Multiple Choice

If the volume of output of a factory for the month of June is 50,000 units,while the budgeted output was 40,000 units:

• A)Comparison of budgeted results and actual results will be misleading unless the company uses a flexible budget.
• B)Actual fixed costs per unit may be expected to exceed budgeted levels.
• C)Actual cost per unit will be higher than standard cost per unit.
• D)Both total production costs and unit production costs should be approximately 25% above budgeted levels.

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Definitions:

Cultural Sensitivity

The awareness and acknowledgment of the cultural differences and similarities between people without assigning them a value.

Managers' Attitude

The predispositions or tendencies managers have towards people, situations, or themselves, affecting decision-making and leadership styles.

Grapevine

Informal and unofficial communication channels within an organization or group.

Interpersonal Relations

The interactions and relationships that occur between individuals in a social or professional setting.