A Good That Entails Relatively High Fixed Costs Associated with the Use

question 48

Multiple Choice

A good that entails relatively high fixed costs associated with the use of knowledge and other information-intensive inputs as key factors of production is

• A) a logo good.
• B) a search good.
• C) a persuasive good.
• D) an information product.

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Definitions:

Labor Quantity Variance

The difference between the actual hours worked and the standard hours allowed for the work performed, multiplied by the standard hourly wage rate.

Produced

The completed output of goods or services as a result of manufacturing or production processes.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of those materials.

Direct Materials Quantity Variance

The variance between the real amount of materials consumed in production and the anticipated standard amount, multiplied by the cost per unit according to standards.