You Have Noticed That There Is an Increase in the Number

question 56

Multiple Choice

You have noticed that there is an increase in the number of homeless people in your city. At the same time you observe that there are also a number of vacant apartments. You believe that the government could reduce the number of homeless people if landlords were required to rent their apartments for less than they are currently charging. This policy recommendation would be motivated by concerns over

• A) efficiency.
• B) equity.
• C) economic growth.
• D) stability.

---

Definitions:

Units Completed

The total number of finished goods produced within a specific accounting period.

Standard Overhead Cost

The pre-determined or estimated cost of indirect expenses that a company expects to incur during a specific period.

Direct Labor Cost Variance

The difference between the budgeted cost of direct labor for production and the actual cost incurred, indicating over or under allocation of resources.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, indicating discrepancies in workforce expenses.