A Favorable Labor Rate Variance Might Be Explained by an Unexpected

question 37

True/False

A favorable labor rate variance might be explained by an unexpected increase in available employees that caused lower wage rates than were anticipated.

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Definitions:

Business Cycle

The fluctuation in economic activity that an economy experiences over a period of time, marked by phases of expansion and contraction.

Mercantilism

An economic theory and practice where government regulation of a nation's economy is used to increase state power at the expense of rival national powers.

Laissez-faire

Laissez-faire is an economic philosophy advocating minimal governmental intervention in the marketplace and the economic activities of individuals and businesses.

Precious Metals

Metals of high economic value, often used as an investment or industrial commodity, including gold, silver, platinum, and palladium.