The Flexible Budget Variance for Direct Labor Can Be Broken

question 142

True/False

The flexible budget variance for direct labor can be broken down into a price variance and an effectiveness variance.

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Definitions:

Special-Interest Effects

The impact that a small, focused group can have on policy-making to secure benefits for itself, often at the expense of the larger public interest.

Concentrated Benefits

Economic or political benefits that are narrowly distributed to a small, specific group, often leading to imbalanced influence or decision-making.

Diffuse Costs

Diffuse costs are expenses that are spread out and not easily attributed to a single product, project, or activity, often indirect in nature.

Unintended Consequences

Outcomes that are not the ones foreseen or intended by a purposeful action.