The Following Information Is for Doran Corporation

question 20

Multiple Choice

The following information is for Doran Corporation:
^*Direct material is measured in pounds
-The price variance for direct material is

• A) $30,000 favourable.
• B) $30,000 unfavourable.
• C) $31,000 unfavourable.
• D) $31,000 favourable.

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Definitions:

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and taxes.

Excludable

A characteristic of a good whereby it is possible to prevent people from enjoying the good unless they have paid for it.

Club Goods

Goods that are excludable but non-rivalrous, where one person's use of the good does not reduce the availability to others but access can be restricted.

Public Goods

Products that cannot be withheld from anyone and whose consumption by one individual doesn't reduce availability for others.