Which of the Following Is True

question 7

Multiple Choice

Which of the following is true?

• A)Consumers would gladly pay more to get the same benefit in more time.
• B)Consumers would gladly pay more to get the same benefit in less time.
• C)Consumers normally pay less to get the same benefit in more time.
• D)Consumers are unwilling to pay less to get the same benefit in less time.
• E)Consumption occurs instantly and therefore has no time variable.

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Definitions:

Practical Standard

A level of performance or an expectation that is realistic and attainable under normal circumstances.

Labour Efficiency Variance

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

Direct Labour Standard

A benchmark for the amount of direct labor time that should be consumed in the production of goods or services, used for costing and efficiency analysis.

Perfection Standard

Ideal or benchmark performance criteria in manufacturing or service delivery that represents the highest possible level of quality or efficiency.