Which Two of the Following Industry-Level and Business Environment Factors

question 97

Multiple Choice

Which two of the following industry-level and business environment factors present higher inherent risks? (choose two options)

• A)A new industry with little or no government support
• B)Heavily regulated industry with special taxes and unique regulations
• C)Demand is not seasonal which provides steady revenue flow
• D)Industry minimally affected by trends

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Definitions:

Labour Rate Variance

Labour rate variance is the difference between the actual hourly wage paid to workers and the standard wage rate expected, indicating variations in labor cost.

Material Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Standard Costing

An accounting method that uses predetermined costs for product costing, performance evaluation, and decision making.

Labour Efficiency Variance

A metric that measures the difference between the actual labor hours used in production and the standard or expected hours, often indicating labor performance.