When Employment Discrimination Results from the Personal Prejudices of Employers

question 73

Multiple Choice

When employment discrimination results from the personal prejudices of employers, economic theory suggests that

• A) competitive forces will tend to reduce discrimination.
• B) the wages of employees who are discriminated against will rise.
• C) an employer who discriminates will have the same costs as those who do not discriminate.
• D) discrimination by an employer will reduce production costs since the employer can pay lower wages.

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Definitions:

Overhead Cost Performance Report

A document that compares the actual overhead costs incurred to the budgeted or standard overhead costs, for the purpose of monitoring and controlling these costs.

Efficiency Variances

Variances that occur when the actual performance deviates from the expected standards, often analyzed in terms of time, cost, and materials.

Budget Variance

The difference between budgeted figures for revenue and expenditure, and the actual amounts realized.

Budgeted Fixed Overhead

The estimated constant costs for a period that do not vary with the level of production or sales, such as rent, salaries, and insurance.