Education Yields Positive Externalities. for Example

question 149

Multiple Choice

Education yields positive externalities. For example,

• A)colleges and universities have benefited, in recent years, from increases in tuition paid by students.
• B)as a result of earning a college degree, a person becomes a more productive worker and benefits by earning higher wages.
• C)a more educated population tends to result in lower crime rates.
• D)All of the above are correct.

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Definitions:

Variable Manufacturing Overhead

Costs that fluctuate with the volume of manufacturing activity, including supplies, utilities, and indirect labor.

Labor Efficiency Variance

The difference between the actual number of labor hours worked and the standard hours expected to complete the work, multiplied by the standard labor rate.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on the standard cost, attributed to efficiency in using resources.

Labor Efficiency Variance

The difference between the actual labor hours used and the standard hours expected for the production level achieved.