The Government of Ruritania Has Implemented Many Programs That Promote

question 40

Multiple Choice

The government of Ruritania has implemented many programs that promote equality,but has become concerned about the very slow rate of growth that has plagued the national economy for many years.In order to address this problem,the government is likely to:

• A)take control of more major industries.
• B)reduce taxes and cut back on some social programs.
• C)make sure to balance its budget.
• D)avoid the use of fiscal policies and reduce the supply of money in circulation.

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Definitions:

Variable Overhead Efficiency Variance

A measure in cost accounting showing the difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the actual hours worked.

Variable Overhead Standards

Predetermined rates used to control and budget for the variable portion of manufacturing overhead costs, adjusting with production volumes.

Direct Labor-hours

The cumulative hours spent by workers who are primarily engaged in creating products or providing services.

Quantity Standard

A predetermined measure of the quantity of inputs expected to be used in the production of goods or services, used for budgeting and performance evaluation.