Not Buying Junk Food While Doing the Weekly Shopping and Forcing

question 5

Multiple Choice

Not buying junk food while doing the weekly shopping and forcing an extra trip to the store to acquire it is an example of:

• A)increasing the cost of a vice.
• B)the law of demand.
• C)how people compensate for time-inconsistent decisions.
• D)All of these are true.

---

Definitions:

Materials Price Variance

The difference between the actual cost of direct materials and the expected (standard) cost multiplied by the actual quantity purchased or used.

Labour Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level of a business.