The Value of Precious Metals Flowing into Europe Quadrupled with the Spanish

question 70

Multiple Choice

The value of precious metals flowing into Europe quadrupled with the Spanish exploitation of

• A) gold mining in Mexico.
• B) the gold found by Pizarro from El Dorado in Colombia.
• C) the silver mines at Potosi in Peru.
• D) gold found in Rio de la Plata.
• E) silver in Guanajuato, Mexico.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected for the actual production level, multiplied by the standard labor rate.

Direct Materials

The raw materials that are directly traceable to a finished product and are an integral part of the finished product.

Standard Costs

Predetermined costs for material, labor, and overhead used as benchmarks against which to compare the actual production costs.

Direct Material

Raw materials that are directly traced and assigned to the production of a specific product.