The Discrepancy Between the Desired and Actual State of Affairs

question 130

Multiple Choice

The discrepancy between the desired and actual state of affairs is the __________.

• A)Unexpected result.
• B)Performance gap.
• C)Unplanned deficiency.
• D)Planning differential.
• E)Change differential.

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Definitions:

Activity Rate

This refers to the cost driver rate used in activity-based costing to allocate costs to products or services based on the activities that those products or services require.

Activity Cost Pool

A grouping of all the costs related to a particular activity, used in activity-based costing to allocate costs to products or services.

Machine-Hours

The total number of hours that machines are in operation during a specific period in the production process.

Machining Costs

Expenses related to the operation of machining equipment, including maintenance, energy consumption, and tooling.