After Saving a Portion of Several Paychecks, Greg Williams Now

question 149

Multiple Choice

After saving a portion of several paychecks, Greg Williams now has the buying power to purchase the computer system he has wanted for the last six months. Greg's want has become a(n) ________.

• A) need
• B) necessity
• C) demand
• D) exchange
• E) transaction

---

Definitions:

Spending Variance

The difference between the budgeted amount of expense and the actual amount spent.

Standard Rate

A predetermined cost or price used as a benchmark for evaluating the efficiency or effectiveness of operations.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a specific period, indicating under or overspending.

Variable Overhead

Costs that change with the level of production or service activity.