Real GDP, or Total Output, in Any Year Is Equal

question 238

Multiple Choice

Real GDP, or total output, in any year is equal to

• A) labor productivity divided by number of worker-hours.
• B) labor productivity multiplied by real output.
• C) number of worker-hours multiplied by labor productivity.
• D) number of worker-hours divided by labor productivity.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours of labor worked and the expected (or standard) hours, multiplied by the standard hourly labor rate.

Direct Labor

The cost of wage-earning employees who are directly involved in the production of goods or services, such as assembly line workers.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the standard cost, demonstrating how actual labor costs differ from budgeted amounts.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost, multiplied by the quantity of materials used.