Variable Manufacturing Overhead Is Applied to Products on the Basis

question 92

Multiple Choice

Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the labor efficiency variance is unfavorable, the variable overhead efficiency variance will be:

• A)favorable.
• B)unfavorable.
• C)either favorable or unfavorable.
• D)zero.

Identify what constitutes reasonable behavior under negligence law.

Analyze defamation and false advertising claims within competitive business environments.

Understand the legal consequences of handling stolen goods and the concept of conversion.

Recognize professional standards of care in negligence cases.

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Definitions:

Creative Destruction

A concept in economics which suggests that new innovations destroy old industries and create new economic structures.

Decreasing-Cost Industry

An industry where the unit cost of production decreases as the industry's output increases, often due to economies of scale.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced.

Long-Run Adjustments

Refers to changes that firms in an industry make in response to economic opportunities or constraints, involving adjustments in production capacity or resource utilization over time.