Which Would Be Considered to Be One of the Factors

question 38

Multiple Choice

Which would be considered to be one of the factors that shift the aggregate supply curve? A change in:

• A)consumer spending.
• B)net export spending.
• C)government regulation.
• D)profit expectations on investment projects.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, often used in manufacturing to measure efficiency and cost management.

Favorable

A term typically used in budgeting and accounting to describe variances or outcomes that are better than expected or budgeted figures.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard variable overhead estimated.

Variable Overhead Efficiency Variance

The difference between the actual hours taken to produce a good and the standard hours expected, multiplied by the variable overhead rate.