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NEW QUESTION: 1
An assembly plant accumulates its variable and fixed manufacturing overhead costs in a
single cost pool, which is then applied to work in process using a single application base.
The assembly plant management wants to estimate the magnitude of the total manufacturing overhead costs for different volume levels of the application activity base using a flexible budget formula. If there is an increase in the application activity base that is within the relevant range of activity for the assembly plant, which one of the following relationships regarding variable and is true?
A. The variable cost per unit and the total fixed costs remain constant.
B. The variable cost per unit is constant, and the total fixed costs decrease.
C. The variable cost per unit is constant, and the total fixed costs increase.
D. The variable cost per unit increases and the total fixed costs remain constant.
Answer: A
Explanation:
Total variable cost changes when changes in the activity occur within the relevant range. The cost per unit for a variable cost is constant for all activity levels within the relevant range. Thus, if the activity volume increases within the relevant range, total variable costs will increase. A fixed cost does not change when volume changes occur in the activity level within the relevant range. If the activity volume increases within the relevant range, total fixed costs will remain unchanged.
NEW QUESTION: 2
While posting a G/L document, two different field statuses (for the posting key and the G/L account) have an impact on the posting.
What happens if one field status is set to Required Entry and the other one to Hidden Entry?
A. The document can be posted anyway.
B. The field will be available for entry.
C. An error message will occur.
D. The field will be hidden.
Answer: C
NEW QUESTION: 3
What level of Capacity is targeted by Capacity Management?
A. sufficient Capacity to meet all current and future demands
B. sufficient Capacity to meet all development and operational requirements
C. sufficient Capacity to meet current demands only
D. sufficient Capacity to meet agreed current and future demands
Answer: D
Explanation:
A. Correct. The objective is to ensure the service provider has sufficient Capacity to meet the current and future agreed demands of the Customer's business needs.
B. Incorrect. There is no objective to meet all demands but to meet agreed demands.
C. Incorrect. There is no specific mention of development and operational requirements.
D. Incorrect. The objective is to provide sufficient Capacity to meet current demands but also agreed future demands.