Efficiency Means That

question 48

Multiple Choice

Efficiency means that

• A)society is conserving resources in order to save them for the future.
• B)society's goods and services are distributed equally among society's members.
• C)society's goods and services are distributed fairly,though not necessarily equally,among society's members.
• D)society is getting the maximum benefits from its scarce resources.

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Definitions:

Labour Rate Variance

The difference between the actual labor costs and the standard (expected) labor costs for a given period.

Actual Direct Labour Rate

The real wage rate paid for the hours that direct laborers work, differing from initially estimated or standard rates.

Standard Direct Labour Rate

The pre-established amount paid per unit of work or hour of labor to employees directly involved in manufacturing.

Materials Price Variance

A financial metric measuring the deviation between the budgeted or standard cost of materials and the actual cost incurred.