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The Flexible-Budget Variance for Direct-Cost Inputs Is Subdivided into Two

question 75

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The flexible-budget variance for direct-cost inputs is subdivided into two detailed variances, the efficiency variance and the price variance.


Definitions:

Consumption

refers to the total amount of goods and services bought and used by households and individuals.

Savings Rate

The portion of disposable income not spent on consumption of goods and services but saved or invested, usually expressed as a percentage of disposable income.

Consumption

Consumption refers to the use of goods and services by households for personal satisfaction or living standards.

Credit Availability

Refers to the ease with which individuals or businesses can obtain loans or credit from financial institutions.

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