Assume That There Is a Supply and Demand Market for Nonpreferred

question 166

Multiple Choice

Assume that there is a supply and demand market for nonpreferred workers. If prejudice against these workers among employers decreases, then there will be a(n)

• A)increased supply of these workers, a rise in their wage rate, and a decrease in their employment.
• B)increased demand for these workers, a rise in their wage rate, and an increase in their employment.
• C)decreased supply of these workers, a fall in their wage rate, and a decrease in their employment.
• D)decreased demand for these workers, a fall in their wage rate, and a decrease in their employment.

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Definitions:

Labor Price Variance

The difference between the actual cost of labor and the budgeted or standard cost, often analyzed in cost accounting.

Standard Rate

A predetermined cost or price that is established for accounting or budgeting purposes, often used in costing and financial analysis.

Actual Hours

The real number of hours worked, as opposed to planned or estimated hours.

Overhead Controllable Variance

The difference between the actual overhead incurred and the overhead that should have been incurred, based on controllable factors.