Which of the Following Best Describes a Price Setter

question 72

Multiple Choice

Which of the following best describes a price setter?

• A) firms in perfect competition
• B) pricing of products that are not standardized
• C) firms setting prices equal to the market price
• D) firms setting price equal to the aggregate price level

---

Definitions:

Raw Materials Quantity Variance

The difference between the actual quantity of raw materials used in production and the estimated quantity expected to be used, measured in terms of cost.

Direct Materials Purchases Variance

This measures the difference between the actual cost of direct materials purchased and the expected (or standard) cost of those materials.

Actual Results

The real outcomes or data achieved, as opposed to forecasts or projections.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost, used for budgeting and cost control.