Factor Mobility Refers to

question 122

Multiple Choice

Factor mobility refers to

• A)Technological change in the use of capital.
• B)The ease of reallocating resources.
• C)Technological change in the use of labor.
• D)The increase in labor productivity.

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Definitions:

Fixed Costs

Costs that do not vary with changes in the volume of production or sales, such as rent, salaries, and insurance.

Activity Level

A measure in cost accounting that identifies the extent to which cost drivers affect the cost of producing goods or services.

Materials Price Variance

The difference between the actual cost of direct materials and the expected cost, based on standard price and actual quantity purchased.

Materials Purchased

The total value of raw materials bought by a company for use in production during a specific time period.