Emphasis on Departmental Efficiency

question 141

Multiple Choice

Emphasis on departmental efficiency

• A) causes bottleneck departments to over-produce and build work-in-process inventories.
• B) causes stock outs related to demand-pull systems.
• C) is a critical component of a lean accounting system.
• D) none of the above.

---

Definitions:

Overapplied

A situation in cost accounting where the allocated manufacturing overhead costs exceed the actual overhead expenses incurred.

Underapplied

A situation where the allocated or applied costs are less than the actual costs incurred.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or expected costs.

Unfavorable

A term used in variance analysis to describe a situation where actual results are worse than expected results, leading to a negative impact on financial performance.