Which of the Following Conditions Normally Would NOT Indicate That

question 128

Multiple Choice

Which of the following conditions normally would NOT indicate that standard costs should be revised?

• A)The engineering department has revised product specifications in responding to customer suggestions.
• B)The company has signed a new union contract that increases the factory wages on average by $2.00 an hour.
• C)Actual costs differed from standard costs for the preceding week.
• D)The world price of raw materials increased.

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Definitions:

Keynesians

Adherents to the economic theories of John Maynard Keynes, emphasizing the importance of total spending in the economy and government interventions to stabilize economic cycles.

Classical Economists

Early economic theorists who focused on the forces of supply and demand, competition, and free markets as the drivers of economic prosperity.

Monetarists

Economists who emphasize the role of governments in controlling the amount of money in circulation as the primary method for stabilizing the economy and combating inflation.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand.