In the United States It Is Clear That If a Dollar

question 61

Multiple Choice

In the United States it is clear that if a dollar were diverted from present consumption to present investment,the return on that investment would be ________ to reward the deferral of consumption,meaning that overall economic welfare would rise with ________ in national saving.

• A)insufficient,an increase
• B)insufficient,a decrease
• C)more than sufficient,an increase
• D)more than sufficient,a decrease

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Definitions:

Direct Materials Price Variance

The cost associated with the difference between the actual price and the standard price of direct materials multiplied by the actual quantity of direct materials used in producing a commodity.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Direct Materials

Raw materials that can be directly traced back to the production of specific goods or services.

Standard Costs

Predetermined costs of manufacturing a single unit or a number of units during a specific period under normal conditions.