When Compared to Exchange Systems That Rely on Money,disadvantages of the Barter

question 66

Multiple Choice

When compared to exchange systems that rely on money,disadvantages of the barter system include

• A)the requirement of a double coincidence of wants.
• B)lowering the cost of exchanging goods over time.
• C)lowering the cost of exchange to those who would specialize.
• D)encouraging specialization and the division of labor.

---

Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost rates.

Direct Labor-hours

The aggregate of hours expended by staff members actively participating in the manufacturing process, utilized to assign labor charges to various products.

Variable Overhead Efficiency Variance

This variance measures the difference between the actual hours taken to produce a good and the standard hours expected, multiplied by the variable overhead rate per hour.

Variable Overhead

Costs that vary in direct proportion to changes in the operational activity of a business, such as utility bills or raw material costs.