Consumption Spending Is the Biggest Aggregate Expenditure,about

question 203

Multiple Choice

Consumption spending is the biggest aggregate expenditure,about

• A)one half
• B)three fifths
• C)two fifths
• D)two thirds
• E)seven tenths

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Definitions:

Labor Rate Variance

The variance between the real labor expenses and the anticipated (or benchmark) cost.

Labor Efficiency Variance

The gap between the number of hours actually worked and the number of standard hours projected, multiplied by the standard wage rate.

Direct Labor

The expenses associated with salaries for workers directly involved in the creation or production of products.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, based on standards.