The Flexible Budget Variance for Direct Labor Is Separated into Two

question 187

True/False

The flexible budget variance for direct labor is separated into two components: a direct labor rate variance and a direct labor quantity variance.

---

Definitions:

Demand Curve

A graph representing the relationship between the price of a good and the quantity demanded by consumers.

Barriers To Entry

Are obstacles that make it difficult for new competitors to enter a market, including high startup costs, strict regulations, and established brand loyalty among consumers.

Excess Capacity

Plant resources that are underused when imperfectly competitive firms produce less output than that associated with achieving minimum average total cost.

Product Differentiation

A marketing strategy that businesses use to distinguish their products or services from those of competitors.