Since You Cannot Add Another Corner in Times Square Regardless

question 79

Multiple Choice

Since you cannot add another corner in Times Square regardless of the rent you can charge, we call the payment for the corners in Times Square what?

• A)pure economic rent.
• B)pure economic wage.
• C)fixed rent.
• D)high demand rent.
• E)none of the above.

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Definitions:

Fixed Factory Overhead

Regular, consistent expenses incurred in the operation of a factory that do not vary with production level, such as rent, salaries, and insurance.

Volume Variance

The difference between the expected volume of production and the actual volume, which impacts the allocation of fixed costs in some costing systems.

Direct Labor Rate Variance

The difference between the actual costs of labor and the expected (or standard) costs, based on the hourly wage rates times the number of hours worked.

Direct Labor Time Variance

The difference between the actual hours worked by employees at the standard rate and the expected hours at the standard rate, for manufacturing a product.