If the Utility Numbers We Assign to Objects Have No

question 15

Multiple Choice

If the utility numbers we assign to objects have no meaning other than to represent the ranking of these goods in terms of a person's preferences, then utility is measurable in the

• A) ordinal sense
• B) cardinal sense
• C) rational sense

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead costs and the standard variable overhead costs allocated based on a predetermined rate.

Indirect Labor

The wages paid to employees who are not directly involved in producing goods but support those who are, such as maintenance workers and supervisors.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected costs based on the standard costs for the actual production volume.