"Cream Skimming" Usually Results in

question 69

Multiple Choice

"Cream skimming" usually results in

• A)cross-subsidization of markets.
• B)subsidies to rural consumers of the service.
• C)regulations to provide universal service.
• D)monopoly.

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Definitions:

Materials Price Variance

The financial difference between the actual cost of materials and the expected (standard) cost, indicating cost management efficiency.

Direct Material

Materials that can be directly associated with the production of goods, directly entering into and being a significant component of the finished product.

Kilos

A metric unit of mass or weight equal to one thousand grams.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours worked, multiplied by the standard labor rate.