Other Things Being Equal,which of the Following Statements About Bond

question 130

Multiple Choice

Other things being equal,which of the following statements about bond prices is correct? Bond prices

• A)are unaffected by changes in the demand for money.
• B)are unaffected by interest-rate changes.
• C)vary directly with interest rates.
• D)vary inversely with interest rates.
• E)vary proportionally with interest rates.

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Definitions:

Labor Rate Variance

The difference between the actual labor rate paid and the standard rate expected, multiplied by the total hours worked.

Labor Efficiency Variance

The variance between the real hours spent producing a good or service and the anticipated standard hours, times the standard wage rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead expected for the actual production achieved.

Variable Overhead Efficiency Variance

A measure used in cost accounting to evaluate the efficiency of variable production costs, comparing the actual hours worked to the standard hours expected.