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Author Question: The effect of spreading fixed manufacturing costs over a shrinking master-budget capacity ... (Read 106 times)

WhattoUnderstand

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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


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Marked as best answer by WhattoUnderstand on Mar 6, 2021

juicepod

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WhattoUnderstand

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


ASDFGJLO

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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