The Following Company Information Is Available for January

question 15

Multiple Choice

The following company information is available for January.The direct materials price variance is:

• A)$5,000 favorable.
• B)$ 300 favorable.
• C)$5,200 unfavorable.
• D)$5,000 unfavorable.
• E)$5,200 favorable.

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Definitions:

Income Elasticity

A measure of how much the demand for a product or service changes relative to a change in consumers' income levels.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases.

Price Elastic

Pertains to a measurement in economics of how responsive an economic variable's quantity is to a change in its price.

Total Budget

The complete amount of money allocated for a particular purpose, project, organization, or time period.