An External Benefit Is A

question 53

Multiple Choice

An external benefit is a:

• A)negative externality.
• B)benefit that accrues to domestic firms as a result of the actions of foreign (external)firms.
• C)benefit that accrues to foreign (external)firms as a result of the actions of domestic firms.
• D)benefit that individuals or firms confer on others without receiving compensation.

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Definitions:

Labor Rate Variance

The difference between the actual costs of labor and the expected (or standard) costs, based on the standard labor rate.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate, highlighting efficiency in labor.

Standard Direct Labor

The predetermined cost of labor that is directly involved in the production of goods.

Standard Rate

A predetermined cost or price that is used for calculating variances, budgeting, or setting product prices.