Which of the Following Statements Is True

question 41

Multiple Choice

Which of the following statements is true?

• A) In Romania under Communist Party rule in the 1980s, Kent cigarettes served as a medium of exchange. This illustrates the use of Kent cigarettes as fiat money.
• B) Commodity money has no value apart from its use as money.
• C) In Romania under Communist Party rule in the 1980s, Kent cigarettes served as a medium of exchange. This illustrates the use of Kent cigarettes as commodity money.
• D) Fiat money must be backed by gold; otherwise it is worthless.

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Definitions:

Cash Account

An account that records cash transactions, including cash receipts and disbursements.

Direct Labor Costs

Expenses directly tied to the production of goods or services, which include wages and benefits paid to employees who physically produce a product.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, weighted by the standard labor rate.

Labor Rate Variance

The difference between the actual hourly labor cost and the standard or budgeted hourly labor cost, multiplied by the total hours worked.