Sheltered Industries Are Protected by Their

question 50

Multiple Choice

Sheltered industries are protected by their

• A)perishability.
• B)transport difficulties and high transport costs.
• C)very small size of operation and lack of scale economies.
• D)any of the above.

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Definitions:

Materials Price Variance

The difference between the actual cost of raw materials and the expected (or standard) cost, which can indicate purchasing efficiency.

Variable Manufacturing Overhead Standards

Benchmark metrics or rates used to allocate variable overhead costs based on actual production volumes.

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.