Which of the Following Would Cause the Labor Demand Curve

question 376

Multiple Choice

Which of the following would cause the labor demand curve to shift to the right?

• A) A decrease in demand for the product the labor is used to produce
• B) An increase in labor productivity
• C) A decrease in the price of a complimentary resource
• D) All of the above

Identify what constitutes a favorable (F) versus unfavorable (U) variance.

Understand how to calculate materials price variance.

Understand the concept of variance in a manufacturing cost context.

Understand how to calculate labor efficiency variance.

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Definitions:

Sales Budget

A detailed projection of a company’s sales revenue for a certain period, often used as a basis for production, purchasing, and staffing plans.

Service Firm

A business that provides intangible products or services to customers, as opposed to selling physical goods.

Products Purchase

The expenditure a company makes to buy goods that will be sold to its customers.

Manufacturing Overhead Budget

An estimation of all manufacturing costs, excluding direct labor and direct materials, planned for a specific period.