Strategic Analysis: Operating Income Notes Questions with Answers PDF Download - 31

An amount of available capacity other than employed capacity, to meet the customer's demand, is classified as

1. targeted capacity
2. budgeted capacity
3. recovery capacity
4. unused capacity

In master budgeting, the cost drivers for manufacturing overhead costs are

1. direct manufacturing labor-hours
2. setup labor-hours
3. budgeted labor-hours
4. both a and b

The difference between actual result and corresponding amount of flexible budget, on the basis of actual level of output is classified as

1. sales mix variance
2. sales volume variance
3. flexible budget variance
4. static budget variance

A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as

1. accounting period costing system
2. process costing system
3. job costing system
4. none of above

The units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate

1. normal spoilage rates
2. abnormal spoilage rates
3. normal scrap rates
4. abnormal scrap rates