Which of the following variances exists only under absorption costing?

options:

production-volume variance

efficiency variances

spending variance

sales-volume variance

Question 2 (0.33333333 points)

General Media manufactures cassettes and CDs in separate divisions utilizing one plant location. The following data have been prepared for review.

Fixed operation costs

$900,000

Practical capacity

2,500 hours

Budgeted usage:

Cassette Division

2,000 hours

CD Division

350 hours

Budgeted variable cost per hour

$400 per hour

What is the fixed cost per year and the variable cost per hour, respectively, for the General Media Cassette Division using the dual-rate method, assuming that the allocation bases are capacity for fixed costs and budgeted capacity for variable costs?

options:

$765,958 rounded and $360

$720,000 and $360

$720,000 and $400

$765,958 rounded and $400

Question 3 (0.33333333 points)

The relative amount of inputs used to reach a given level output is a measure of which of the following?

options:

selling price

efficiency

effectiveness

marketing efforts

Question 4 (0.33333333 points)

Which of the following is likely to be related to an unfavorable direct materials rate variance?

options:

Standard costs were determined correctly.

Materials were purchased based on a competitive bid.

unexpected price decreases in direct materials

the negotiating skills of the marketing manager

Question 5 (0.33333333 points)

In a firm's value chain downstream costs are categorized as

options:

customer service costs.

production costs.

design costs