If the Actual Direct Labor Hours Spent Producing a Commodity

question 135

Multiple Choice

If the actual direct labor hours spent producing a commodity differ from the standard hours, the variance is termed:

• A) time variance.
• B) price variance.
• C) quantity variance.
• D) rate variance.

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Definitions:

Disposable Income

Funding available to households for their spending and saving plans post income tax cuts.

Savings

The portion of income that is not spent on consumption but set aside for future use, often in a bank account or investment vehicle.

Consumption

The use of goods and services by households or individuals, constituting one of the primary components of the economy alongside investment, government spending, and net exports.

Savings

The portion of income not spent on consumption of goods and services but kept aside, usually in deposit accounts or investments.