The Relative Price of a Good Is

question 111

Multiple Choice

The relative price of a good is

• A) equal to the money price of a good.
• B) what you get paid for babysitting your cousin.
• C) equal to the price of that good divided by the quantity demanded of the good.
• D) an opportunity cost.

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Definitions:

Materials Quantity Variance

The variance between the actual amount of materials utilized in manufacturing and the anticipated amount, multiplied by the established unit cost.

Raw Materials Price Variance

The difference between the actual cost and the standard cost of raw materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount of materials that should have been used, measured at the standard cost.

Labor Efficiency Variance

The deviation between the actual hours taken to produce a unit of output and the standard hours expected, multiplied by the standard labor rate.