The Methods That Governments Use to Support Farmers Vary,but They

question 7

Multiple Choice

The methods that governments use to support farmers vary,but they almost always involve some or all the following methods EXCEPT

• A) pay farmers a subsidy.
• B) introduce a price floor.
• C) isolate the domestic market from global competition.
• D) tax farmers.
• E) use price supports.

---

Definitions:

Fixed Overhead Volume Variance

The difference between the budgeted and actual volume of production, which results in a variance in fixed overhead costs allocated per unit.

Overhead Applied

The portion of manufacturing overhead costs allocated to individual products or job orders based on a predetermined overhead rate.

Products

Goods or commodities that are manufactured or refined for sale.

Variable Overhead Efficiency Variance

The difference between actual hours taken to produce something and the standard hours expected, multiplied by the variable overhead rate.