An Unfavourable Fixed Overhead Budget Is Likely to the Result

question 35

Multiple Choice

An unfavourable fixed overhead budget is likely to the result of:

• A) An unexpected increase in factory rent
• B) An unexpected increase in electricity rate
• C) An incorrect application of fixed overhead rate
• D) An unexpected increase in factory rent and an unexpected increase in electricity rate

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Definitions:

Broad Assortment

A wide range of products or services offered by a business to cater to various customer preferences and needs.

Wholesaler

A person or company that sells goods in large quantities at lower prices, typically to retailers rather than directly to consumers.

Rack Jobbers

Merchandising agents who enter stores to stock and maintain inventory, often in the music or book sectors.

Hosiery

A category of garments worn on the legs and feet, such as socks and tights, often for fashion, comfort, or the needs of work attire.