If the Wage Rate Paid Per Hour Differs from the Standard

question 92

Multiple Choice

If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is termed:

• A) variable variance.
• B) rate variance.
• C) quantity variance.
• D) volume variance.

Understand the nature of entrepreneurship and its impact on society and the economy.

Recognize the role of innovation and creativity in entrepreneurship.

Identify the characteristics of successful entrepreneurs and entrepreneurial educators.

Understand the importance of a long-term perspective and adaptability in entrepreneurship.

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Definitions:

Cost Of Goods Sold

Direct spending on materials and labor required to produce the merchandise a company sells.

Operating Expenses

The costs associated with the day-to-day activities of a business, excluding costs directly tied to the production of goods or services, such as rent, utilities, and salaries.

Merchandising Company

A business that purchases finished goods for resale in order to earn a profit, without transforming these goods.

Wholesale Parts Company

A business entity that specializes in purchasing and selling automotive, machinery, or electronic parts in large quantities at lower prices, primarily to retailers or repair shops rather than end consumers.