A Flow Variable

question 34

Multiple Choice

A flow variable

• A) measures a process that takes place over a period of time
• B) is often used to measure the amount of wealth that a household has
• C) is related to the supply and demand of water
• D) measures a quantity in existence at a moment in time
• E) is a definition unique to economics

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Definitions:

IMA

Stands for the Institute of Management Accountants, a professional organization that promotes the practice of management accounting and financial management.

Price Variances

The difference between the actual cost and the standard cost of goods or services.

Direct Labor Cost Variance

The difference between the budgeted or expected cost of direct labor and the actual cost incurred.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the business.