In the Language of Macroeconomics,which of the Following Is Considered

question 143

Multiple Choice

In the language of macroeconomics,which of the following is considered "investment"?

• A)the purchase of an annual pass to the gym
• B)the purchase of new tools and machinery
• C)the purchase of stocks, bonds, or mutual funds
• D)the purchase of durable goods

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead and what the variable overhead costs should have been for the actual good units produced.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can indicate efficiency or waste.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on the hours worked.