Which of the Following Is One of the Necessary Conditions

question 40

Multiple Choice

Which of the following is one of the necessary conditions for perfect competition?

• A) Diminishing utility
• B) No barriers to entry
• C) Differentiated products
• D) Indivisible setup costs

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Definitions:

Overhead Variance

The difference between the actual overhead costs incurred and the standard or expected overhead costs.

Direct Materials Price Variance

Direct materials price variance is the difference between the actual cost of direct materials and the standard cost, showing how much more or less was spent on purchasing materials.

Direct Labor Quantity Variance

The difference between the actual hours worked and the standard hours allowed, multiplied by the standard rate, indicating efficiency in labor usage.

Overhead Volume Variance

The difference between the expected (or standard) amount of manufacturing overhead costs given a certain level of production and the actual overhead costs incurred.