Table 19-11 Consider the Following Data for Tyrovia, a Country

question 165

Multiple Choice

Table 19-11
Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
-Refer to Table 19-11. Real GDP for Tyrovia for 2018 using 2009 as the base year equals

• A) $1,140.
• B) $880.
• C) $690.
• D) $560.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost, indicating how material cost fluctuations affect production costs.

Quantity Standard

The expected or budgeted quantity regarding inputs or outputs, used as a performance measure or pricing basis.

Price Standard

A predetermined cost that represents what should be paid for a unit of input, such as materials or labor.

Materials Price Variance

Materials price variance is the difference between the actual cost of materials used in production and the standard cost expected, it can indicate changes in market prices or purchasing efficiency.