If the Imposition of Tariff on a Commodity Alters the Relative

question 14

Multiple Choice

If the imposition of tariff on a commodity alters the relative prices of the imposing country's exports to its imports, it is referred to as the:

• A)total price effect of the tariff.
• B)production effect of the tariff.
• C)consumption effect of the tariff.
• D)terms-of-trade effect of the tariff.

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Definitions:

Direct Materials Cost Variance

The difference between the budgeted cost of materials and the actual cost incurred for materials used in production.

Standard Materials Cost

The budgeted or estimated cost of raw materials required for production, used for cost control and variance analysis.

Material Used

The raw materials that have been consumed in the production process to create goods.

Total Labor Cost Variance

This refers to the difference between the actual labor costs incurred and the standard labor costs for the actual production levels.