When machine-hours are used as a cost allocation base, the item MOST likely to contribute to an unfavourable production-volume variance is
A)a new competitor gaining market share.
B)a new manufacturing machine costing considerably more than expected.
C)an increase in the cost of energy.
D)strengthened demand for the product.
E)an increase in the number of direct-labour hours.

Question

Quizplus · Accepted Answer

The Answer of When machine-hours are used as a cost allocation base, the item MOST likely to contribute to an unfavourable production-volume variance is
A)a new competitor gaining market share.
B)a new manufacturing machine costing considerably more than expected.
C)an increase in the cost of energy.
D)strengthened demand for the product.
E)an increase in the number of direct-labour hours.

When Machine-Hours Are Used as a Cost Allocation Base, the Item