Which of the Following Variables Are Included in the Index

question 163

Multiple Choice

Which of the following variables are included in the index of leading indicators?

• A) new orders placed with manufacturers, length of average workweek, permits for new housing starts
• B) changes in the M1 money supply, number of new credit cards, political stance of current politicians
• C) average worker salary, average number of children per family, current standard of living
• D) labor-force participation rate, household debt as a share of disposable income, the real interest rate

---

Definitions:

Budget Variance

The financial difference between the budgeted amount and the actual amount spent or received.

Standard Cost System

An accounting method that assigns preset costs to products and services, which are then compared to actual costs incurred.

Predetermined Overhead Rate

A calculated rate designed to assign estimated indirect manufacturing costs to products or services, based on a planned activity level.

Fixed Component

A portion of total costs that does not change with the level of activity or production volume, such as rent or salaries.