If Actual Costs Are Greater Than Standard Costs There Is

question 77

Multiple Choice

If actual costs are greater than standard costs there is a(n)

• A) normal variance.
• B) unfavorable variance.
• C) favorable variance.
• D) error in the accounting system.

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Definitions:

Tax Revenues

Represents the income that is gained by governments through taxation.

Recession

A phase of short-term economic downturn marked by diminished trade and manufacturing activities, usually recognized by a decrease in GDP for two consecutive quarters.

Automatic Stabilizers

Economic measures and initiatives, like taxation and unemployment insurance, that naturally adapt to mitigate the effects of economic changes without direct action from the government.

Discretionary Fiscal Policy

Changes in government spending and taxes to promote full employment, price stability, and economic growth.