An Acyclical Variable Is One That

question 5

Multiple Choice

An acyclical variable is one that:

• A)moves the same direction as real GDP.
• B)has little tendency to move during a business cycle.
• C)moves the opposite direction as real GDP.
• D)determined outside the model.

---

Definitions:

Direct Materials Purchased

The raw materials bought by a company that are directly used in the production of its goods.

Actual Variable Manuf. Overhead

The real costs incurred from indirect, variable production expenses, assessed after the production process is completed.

Variable Manufacturing Overhead

These are manufacturing overhead costs that vary with the level of production output, such as utilities or materials used in the manufacturing process.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected cost based on standard prices.