In a Laissez-Faire System of Capitalism What Is the Role

question 8

Multiple Choice

In a laissez-faire system of capitalism what is the role of the government?

• A)to protect the rights of workers
• B)to enforce minimum wage regulations
• C)providing legal and military security in which to conduct business
• D)to protect the most vulnerable workers, women and children

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Definitions:

Volume Variance

The difference between the expected volume of production and the actual volume, which impacts the allocation of fixed costs in some costing systems.

Direct Labor Rate Variance

The difference between the actual costs of labor and the expected (or standard) costs, based on the hourly wage rates times the number of hours worked.

Direct Labor Time Variance

The difference between the actual hours worked by employees at the standard rate and the expected hours at the standard rate, for manufacturing a product.

Total Cost Variance

The difference between the budgeted or standard cost of production and the actual cost incurred.