The Opportunity Cost of Holding Money Is Measured by

question 37

Multiple Choice

The opportunity cost of holding money is measured by

• A) short-term nominal interest rate.
• B) short-term real interest rate.
• C) long-term nominal interest rate.
• D) long-term real interest rate.

Understand how to calculate labor rate variance.

Identify what constitutes a favorable (F) versus unfavorable (U) variance.

Understand how to calculate materials price variance.

Understand the concept of variance in a manufacturing cost context.