Which of the Four Types of Economic Decision Makers Is

question 52

Multiple Choice

Which of the four types of economic decision makers is most important?

• A)firms, because they produce all goods and services in the economy
• B)households, because they demand goods and services and supply resources
• C)government, because it ultimately sets and enforces the "rules of the game"
• D)government, because it steps in when there is market failure
• E)the rest of the world, because there are over 150 countries

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Definitions:

Labor Efficiency Variance

A discrepancy between the actual working hours and the expected standard hours, multiplied by the predetermined salary rate.

Direct Labor Standards

Direct labor standards are predetermined measures for the amount of labor time and cost that should be associated with producing a unit of product or performing a service.

Standard Cost Variances

The differences between the actual costs and the standard costs for manufacturing or service processes, used to control and manage expenses.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.