The Unemployment Rate Is High in the City in Which

question 5

Multiple Choice

The unemployment rate is high in the city in which a company has a factory.The company finds that they are able to pay new employees a lower wage per hour than when the unemployment rate was lower a year ago.Which variance is directly impacted?

• A)Materials price variance
• B)Materials efficiency variance
• C)Labor price variance
• D)Labor efficiency variance

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Definitions:

Equity Method

A financial recording method where investments are logged if the investor has a considerable impact on the investee, though not complete control.

Cumulative Losses

Total losses accumulated over a period, often reflecting a company's financial difficulties or losses in investment value.

Fair-Value Method

An accounting strategy used to measure and report the value of certain assets and liabilities on the basis of their actual or estimated fair market prices.

Fair Value

The income derived from the disposal of an asset or the payment required for the assignment of a liability in an organized exchange with market participants during the evaluation period.