Diminishing Marginal Rate of Substitution Can Be Seen When Indifference

question 7

Multiple Choice

Diminishing marginal rate of substitution can be seen when indifference curves

• A) cross.
• B) are convex.
• C) are downward sloping.
• D) become flatter as we move down and to the right.

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Definitions:

Materials Quantity Variance

The contrast between the quantity of materials actually used and the quantity that was projected, with this difference being multiplied by the standard price per unit.

Materials Price Variance

The variance between the real expense of materials utilized in production and the predetermined standard cost of those materials.

Raw Materials Inventory

The stock of basic materials and components that are to be used in the production or manufacturing of goods.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost, often analyzed in cost accounting.