Which of the following is not a reason for a direct materials quantity variance?

	purchasing of inferior raw materials
	increased material cost per unit
	spoilage of materials
	malfunctioning equipment

A responsibility center in which the department manager has responsibility for and authority over costs and revenues is called a(n)

	profit center
	volume center
	cost center
	investment center

Which of the following would be considered a sunk cost?

	warehouse lease expense
	net book value of equipment that has no market value
	purchase price of new equipment
	equipment rental for the production area

The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called

	cost-volume-profit analysis
	absorption cost analysis
	capital investment analysis
	variable cost analysis

All of the following can be used as an allocation base for calculating factory overhead rates except:

	machine hours
	direct labor hours
	total units produced
	direct labor dollars