If Real GDP Per Capita Doubles Between 2005 and 2020

question 173

Multiple Choice

If real GDP per capita doubles between 2005 and 2020, what is the average annual growth rate of real GDP per capita?

• A)4.7%
• B)7.25%
• C)10.5%
• D)15%
• E)21%

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Definitions:

SQ × AP

The standard quantity times actual price formula, used in cost accounting to calculate the variance between the actual cost and the standard cost of raw materials.

Direct Materials Price Variance

The difference between the actual cost and the standard cost of direct materials used in production, indicating how effectively the materials budget is being adhered to.

Per-Unit Standards

Estimates of the direct materials, direct labor, and manufacturing overhead costs required to produce one unit of a product.

Direct Labor Price Variance

The difference between the actual cost of direct labor and the expected (or standard) cost of direct labor used during production.