New Ways to Do a Job with Less Effort and at Lower

question 216

Multiple Choice

New ways to do a job with less effort and at lower cost is the basic principle characterizing the

• A) increases in productivity for the past two hundred years.
• B) great desire to be an entrepreneur.
• C) motivation for owning a business.
• D) American way of life.
• E) way small businesses fill the needs of other businesses.

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Definitions:

Price Variance

The difference between the actual price paid for a good or service and its expected (budgeted) price.

Standard Price

The predetermined cost that a company expects to pay for goods or services under normal conditions.

Direct Labor Rate Variance

The variance between the real expense of direct labor and its anticipated (or standard) price, employed in analyzing manufacturing costs.

Actual Costs

The actual expenses incurred in the production of goods or services, including all direct and indirect costs.