The Basic Characteristic of the Short Run Is That

question 255

Multiple Choice

The basic characteristic of the short run is that

• A)barriers to entry prevent new firms from entering the industry.
• B)the firm does not have sufficient time to change the size of its plant.
• C)the firm does not have sufficient time to cut its rate of output to zero.
• D)a firm does not have sufficient time to change the amounts of any of the resources it employs.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the budgeted cost, based on the standard labor rate.

Labor Rate Variance

The difference between the actual hourly wage rate paid to workers and the expected or standard rate, affecting production costs.

Labor Rate Variance

The variance between the real hourly wage workers receive and the anticipated or usual wage rate, when multiplied by the total hours of work.

Labor Efficiency Variance

The variance between the real hours spent working and the anticipated standard hours, times the normal wage rate.