A plant operating at capacity would suggest that most likely: 0 every machine and person in the plant is working at the maximum possible rate. 0 only some specific machines or processes are operating at the maximum rate possible. 0 fixed costs will need to change to accommodate increased demand. 0 managers should produce those products with the highest contribution margin in order to deal with the constrained resource. Which ofthe following statements about standard costs is FALSE? 0 As long as standards are viewed by employees as being reasonable, they can promote economy and efficiency. 0 Standard costs can greatly complicate bookkeeping. 0 Standard costs fit naturally in an integrated system of "responsibility accounting." 0 Standards should be reviewed periodically for their continued relevance. With activitybased costing, the activity measures used to assign the overhead costs are: 0 volume-based O nonvolumebased 0 both volume and non-volume based 0 traditionalbased The main issues to consider when implementing a balanced scorecard include all the following except: 0 Individual measures should flow from the goals and objectives established by upper management 0 Individual measures should be mutually reinforcing O The performance measurement system and the employee evaluation and compensation system should not be linked. 0 Top managers must fully support its implementation Which ofthe following variances is caused by a difference between the denominator activity in the predetermined overhead rate and the standard hours allowed for the actual production of the period? 0 fixed overhead budget variance 0 fixed overhead volume variance 0 variable overhead efficiency variance, 0 variable overhead spending variance