When It Comes to Variances

question 91

Multiple Choice

When it comes to variances,

• A)actual costs that vary from standard costs always indicate efficiencies.
• B)ideal standards will generally result in favourable variances for the company.
• C)a variance is the difference between total actual costs and total standard costs.
• D)if actual costs are less than standard costs, the variance is unfavourable.

---

Definitions:

Wage Rate

The amount of money paid to an employee per unit of time for labor or services rendered.

Monopolist

A monopolist is a single seller in a market who has significant control over the price and supply of a product or service.

Competitive Labor Market

A market where numerous buyers (employers) and sellers (workers) meet, with the price of labor (wages) determined by the supply of and demand for labor.

Marginal Product

The additional output resulting from one more unit of a certain input, keeping other inputs constant.