With Respect to the Issue of Counterfeit Brands, It Is

question 61

Multiple Choice

With respect to the issue of counterfeit brands, it is correct to say that

• A) counterfeit brands used to be a big problem, but new legislation in various countries has reduced the problem considerably.
• B) counterfeit brands are a big problem in products like perfume and designer clothing, but less of a problem in pharmaceuticals and expensive wines.
• C) consumers benefit from counterfeit goods because they can get good products for lower prices.
• D) it is generally easy to tell the difference between counterfeit goods and the real thing.
• E) none of these.

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Definitions:

Overhead Volume Variance

The difference between the budgeted overhead cost and the applied overhead cost based on actual activity levels.

Labor Price Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor, used in budgeting and cost management.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can indicate efficiency or waste.

Standard Price

The predetermined cost assigned to materials, labor, and overhead, used in budgeting and variance analysis.