the is an expense off expenses. Which of the following activity bases would be the most appropriate for food costs of a hospital? lying ace M a. number of nurses scheduled to work b. how many MRI's are taken c. number of patients who stay in the hospital d. quantity of prescriptions filled 23. The contribution margin ratio is a. the same as the variable cost ratio b. the same as profit c. the portion of equity contributed by the stockholders d. the same as the profit-volume ratio 24. The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured: a. exceed units sold b. equal units sold c. are less than units sold d. are equal to or greater than units sold 25. A cost that has characteristics of both a variable cost and a fixed cost is called a a. variable/fixed cost b. mixed cost c. discretionary cost d. sunk cost 26. Assuming that the standard fixed overhead rate is based on full capacity, the cost of available but unused productive capacity is indicated by the a. fixed factory overhead volume variance b. direct labor time variance c. direct labor rate variance d. variable factory overhead controllable variance 27. Budgeting supports the planning process by encouraging all of the following activities except a. requiring all organizational units to establish their goals for the upcoming period b. increasing the motivation of managers and employees by providing agreed-upon expectations c. directing and coordinating operations during the period d. improving overall decision making by considering all viewpoints, options, and cost reduction possibilities 28. The controllable variance measures a. operating results at less than normal capacity b. the efficiency of using variable overhead resources c. operating results at more than normal capacity d. control over fixed overhead costs