The Following Data Are for a Series of Increasingly Extensive

question 122

Multiple Choice

The following data are for a series of increasingly extensive flood control projects: For Plan D marginal costs and marginal benefits are:

• A)$72,000 and $64,000 respectively.
• B)$28,000 and $12,000 respectively.
• C)$24,000 and $18,000 respectively.
• D)$16,000 and $28,000 respectively.

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Definitions:

Direct Materials Price Variance

The difference between the actual cost and the standard cost of the materials used in production, reflecting how effectively a company manages its purchasing costs.

Materials Cost Per Yard

The total cost associated with acquiring materials required to produce one yard of a product.

Yards Per Unit

A measurement indicating the amount of yardage (length) required or produced per unit of a product.

Actual Costs

The real or precise cost incurred in the production of goods or in the rendering of services, as opposed to estimated or standard costs.