Cavern Company's Output for the Current Period Results in a $5,250

question 114

Multiple Choice

Cavern Company's output for the current period results in a $5,250 unfavorable direct material price variance.The actual price per pound is $56.50 and the standard price per pound is $55.00.How many pounds of material are used in the current period?

• A)5,393.
• B)5,110.
• C)3,500.
• D)3,750.
• E)4,000.

---

Definitions:

Four-Firm Concentration Ratio

An economic indicator that measures the combined market share of the top four firms in an industry, used to assess the level of competition.

Market Shares

The proportion of total market sales within an industry that is held by a specific company.

Herfindahl Index

A measure of market concentration used to determine the level of competition within an industry by summing the squares of the market shares for each firm.