The Usage Variance Can Be Calculated by Multiplying the Expected

question 54

Multiple Choice

The usage variance can be calculated by multiplying the expected input price by the difference between:

• A) the quantity of inputs actually used and the quantity of inputs that should have been used for actual output
• B) the standard inputs allowed and projected inputs allowed for expected output
• C) the quantity of inputs actually used and the quantity of inputs that should have been used for projected output
• D) the standard inputs allowed and projected inputs allowed at actual output

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Definitions:

Increasing Cost Industry

An industry in which costs per unit of output rise as the scale of production increases, often due to resource limitations or increasing input prices.

Factor Prices

The cost of inputs used in production, such as labor, land, and capital, which are influenced by supply and demand for these factors.

Market Supply Curve

A graphical representation showing the relationship between the price of a good or service and the total quantity of it that producers are willing to supply.

Textile Industry

This industry involves the production and distribution of fabrics and cloth products, ranging from raw materials processing to the creation of finished goods.