Author Question: The effect of spreading fixed manufacturing costs over a shrinking master-budget capacity ... (Read 111 times)

WhattoUnderstand · **on:** Mar 6, 2021

Question 1

Operating income reported on the end-of-period financial statements is changed when ________ is used to handle the production-volume variance at the end of the accounting period.
◦ the adjusted allocation-rate approach
◦ the proration approach
◦ the write-off variances to cost of goods sold approach
◦ the reinstatement approach

Question 2

The effect of spreading fixed manufacturing costs over a shrinking master-budget capacity utilization amount results in ________.
◦ greater utilization of capacity
◦ increased unit costs
◦ more competitive selling prices
◦ greater demand for the product

juicepod · **Reply #1 on:** Mar 6, 2021

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