Recall the Application About Running a Lawn-Cutting Business Using Solar-Powered

question 39

Multiple Choice

Recall the Application about running a lawn-cutting business using solar-powered equipment to answer the following question(s) .
-Using figures from the Application,the opportunity cost of running your business

• A) should only include the opportunity cost of the invested capital.
• B) should include your invested capital.
• C) should not include the invested capital.
• D) should only include the opportunity cost of your time.

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Definitions:

Materials Quantity Variance

The variance between the actual amount of materials utilized in manufacturing and the anticipated amount, multiplied by the established unit cost.

Raw Materials Price Variance

The difference between the actual cost and the standard cost of raw materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount of materials that should have been used, measured at the standard cost.

Labor Efficiency Variance

The deviation between the actual hours taken to produce a unit of output and the standard hours expected, multiplied by the standard labor rate.