Which of These Statements About Economic Models Is Correct

question 178

Multiple Choice

Which of these statements about economic models is correct?

• A)For economists,economic models provide insights about the world.
• B)Economic models are built with assumptions.
• C)Economic models are often composed of equations and diagrams.
• D)All of the above are correct.

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Definitions:

Overhead Cost Performance Report

A document that compares the actual overhead costs incurred to the budgeted or standard overhead costs, for the purpose of monitoring and controlling these costs.

Efficiency Variances

Variances that occur when the actual performance deviates from the expected standards, often analyzed in terms of time, cost, and materials.

Budget Variance

The difference between budgeted figures for revenue and expenditure, and the actual amounts realized.

Budgeted Fixed Overhead

The estimated constant costs for a period that do not vary with the level of production or sales, such as rent, salaries, and insurance.