A $20 Minimum on a Taxi Fare Is an Example

question 242

Multiple Choice

A $20 minimum on a taxi fare is an example of:

• A) a price ceiling.
• B) a price floor.
• C) rent control.
• D) laissez-faire.

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Definitions:

Flexible Manufacturing Overhead Budget

A plan that estimates the variable and fixed overhead costs for each level of production activity.

Direct Labor Hour

A measure of the labor directly involved in producing goods or services, expressed in hours.

Volume Overhead Variances

The difference between the budgeted overhead costs based on expected volume and the actual overhead costs incurred.

Controllable Variance

The difference between actual and budgeted performance that can be directly managed or controlled by responsible managers.