Will the financial statements of a company always differ when different choices at the start of the accounting period are made r
egarding the denominator-level capacity concept? A. No. It depends on how a company handles the production-volume variance in the end-of-period financial statements. For example, if the adjusted allocation-rate approach is used, each denominator-level capacity concept will give the same financial statement numbers at year-end.
B. Yes. If different choices at the start of the accounting period are made regarding the denominator-level capacity concept, this will always result in different financial statement numbers at year-end.
C. Yes. The four different capacity-level concepts result in four different budgeted fixed manufacturing overhead cost rates per unit, which in turn leads to different results being reported on the financial statements.
D. No. It depends on how a company handles the production-volume variance in the end-of-period financial statements. For example, if the write-off approach is used, each denominator-level capacity concept will give the same financial statement numbers at year-end. Click to select your answer.
Will the financial statements of a company always differ when different choices at the start of the accounting period are made regarding the denominator-level capacity concept?
A. No. It depends on how a company handles the production-volume variance in the end-of-period financial statements. For example, if the adjusted allocation-rate approach is used, each denominator-level capacity concept will give the same financial statement numbers at year-end.
Explanation:
Level capacity strategy
The organisation manufactures or produces at a constant rate of output ignoring any changes or fluctuations in customer demand levels. This often means stockpiling or higher holdings of inventory when customer demand levels fall
The planning phase is the second phase of any activity. It is basically made after analysis of all the problems and opportunities.
Planning phase basically aims at organizing the techniques for achieving the aims. This aims for planning phase to achieve the sales and set targets for gaining maximum performance in marketing. This sets all the strategies and policies for marketing.
<span>Buying a bond does not constitute ownership in a company. In the event that Touchtech, or any firm that issues a bond, runs into financial difficulty, bondholders are the first to be paid. Sean, as a bondholder, would be among the first paid.</span>
