Answer the Following Question(s)using the Information Below

question 92

Multiple Choice

Answer the following question(s) using the information below.Heinrich Corporation budgeted fixed manufacturing costs of $6,000 during 2012.Other information for 2012 includes:
The company uses absorption costing and the fixed manufacturing cost rate is based on the budgeted denominator level.Manufacturing variances are closed to cost of goods sold.
-The production-volume variance is

• A)$2,000.
• B)$900.
• C)$2,400.
• D)$0.
• E)$1,500.

Distinguish between discretionary fiscal policy and automatic stabilizers.

Recognize the impact of fiscal policy on employment, the price level, and GDP.

Analyze the effects of taxes and government purchases on the economy.

Understand the concept of aggregate expenditure and its relationship with fiscal policy.

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Definitions:

Brady-

A prefix used in medical terms to denote slowness, as in bradycardia, which means slow heart rate.

Slow

Characterized by a low speed; not fast or quick.

Insomnia

A sleep disorder characterized by difficulties in falling asleep, staying asleep, or obtaining restorative sleep.

In-

A prefix used to indicate negation or absence.