John Is Trying to Decide Between Two Universities

question 77

Multiple Choice

John is trying to decide between two universities. According to research, John would be happier with his decision if he did the following:

• A) thought long and hard about his decision.
• B) weighed all of the pros and cons of his two choices before making his decision.
• C) spent time talking with his friends and family about the pros and cons of the two choices before making his decision.
• D) made his decision based on his gut feelings about each university.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials purchased and the standard cost, multiplied by the quantity of materials purchased.

Raw Materials Price Variance

The difference between the actual cost of raw materials and the expected (or standard) cost.

Raw Materials Quantity Variance

It measures the difference between the expected amount of raw materials needed for production and the actual amount used.

Standard Cost

A predetermined cost of manufacturing a single unit or a specified quantity of a particular product or service, used as a benchmark to measure performance.