Which of the Following Is NOT an Example of the Micro-Macro

question 34

Multiple Choice

Which of the following is NOT an example of the micro-macro dilemma?

• A) Having a dog or cat can teach a child responsibility, but add expenses to the family budget.
• B) Some people like to smoke cigarettes, but the smell annoys many others.
• C) Aluminum soft-drink cans are convenient, but expensive to pick up along the highway.
• D) Nuclear power may reduce your fuel bill, but worry others.
• E) Driving fast can be fun, but is hazardous to other people.

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Definitions:

Favorable Variances

Variances that occur when actual costs are less than standard or budgeted costs, or actual revenues exceed expectations, benefiting the company's financial performance.

Unfavorable Variances

Situations where actual costs are higher than planned or budgeted costs, or actual revenue is lower than expected.

Management By Exception

A management strategy where only significant deviations from planned results are brought to the attention of management, focusing efforts on areas that are not performing as expected.

Standard Costs

Preset costs established for the manufacture of a product, including direct materials, direct labor, and overhead expenses, against which actual costs are compared.