Which of the Following Lists Contains, in This Order, Natural

question 363

Multiple Choice

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

• A)For a restaurant: the land the restaurant was built on, the things the Chef learned at Cooking School, the freezers where the chops and steaks are kept.
• B)For a furniture company: wood, the company cafeteria, saws.
• C)For a railroad: fuel, railroad engines, railroad tracks.
• D)None of the above is correct.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly wage rate.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allocated for the actual production achieved.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or budgeted) cost, based on standard rates and actual hours worked.