Which of the Following Is True of Economic Expansion

question 30

Multiple Choice

Which of the following is true of economic expansion?

• A)There is a decline in production,employment,and income.
• B)The standard of living rises because more people are employed and have money to spend.
• C)There is a decline in spending.
• D)Consumer spending is low and business output is sharply reduced.
• E)The prices stagnate during this period.

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Definitions:

Direct Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the standard expected quantity.

Direct Labor Time Variance

The difference between the actual time taken to manufacture a product and the standard time expected, multiplied by the wage rate.

Direct Labor Time Variance

The difference between the estimated time for production and the actual time taken, multiplied by the wage rate.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, indicating efficiency in labor usage.