Which of the Following Is MOST Likely to Be an Example

question 289

Multiple Choice

Which of the following is MOST likely to be an example of an unsought product?

• A) iPod MP3 player
• B) Lexus LS 460 luxury automobile
• C) flight on American Airlines to Phoenix
• D) Roget's Thesaurus
• E) Ivory soap

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Definitions:

Standard Hours Allowed

The number of labor hours that should have been worked according to budgeted productivity levels for the actual level of production achieved.

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the standard or expected wage rate.

Standard Labor Rate

The predetermined hourly wage rate used in cost accounting to calculate labor costs.

Standard Hours Allowed

The number of hours that should have been worked for the actual production achieved, based on pre-established standards.