Which of the Following Is the Most Likely Explanation for the Imposition

question 68

Multiple Choice

Which of the following is the most likely explanation for the imposition of a price floor on the market for corn?

• A)Policymakers have studied the effects of the price floor carefully,and they recognize that the price floor is advantageous for society as a whole.
• B)Buyers and sellers of corn have agreed that the price floor is good for both of them and have therefore pressured policy makers into imposing the price floor.
• C)Buyers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.
• D)Sellers of corn,recognizing that the price floor is good for them,have pressured policymakers into imposing the price floor.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allotted for the actual production achieved, indicating the efficiency of utilizing variable resources.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.

Favorable

A term used in variance analysis indicating that actual costs were lower than budgeted or standard costs, leading to higher profits.

Unfavorable

A term used in variance analysis to describe a situation where actual results are worse than expected results, often leading to a negative impact on financial performance.