The Difference Between Standard and Actual Costs Is

question 139

Multiple Choice

The difference between standard and actual costs is

• A)considered to be an ideal standard.
• B)a variance by exception.
• C)the budgeted cost of one item of product.
• D)a standard cost variance.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Single-Price Monopolist

A market dominance condition where a monopolist charges the same price for all units of a product sold to every consumer.

Perfectly Price Discriminate

A theoretical pricing strategy where a seller charges the maximum price each individual consumer is willing to pay, capturing all consumer surplus.

Profit Area

A segment of a business or a market where the income earned is more than the expenses incurred, resulting in a financial gain.