Coffee and Tea Are Substitutes So That If the Price

question 19

Multiple Choice

Coffee and tea are substitutes so that if the price of tea increases, the

• A)quantity demanded for coffee increases.
• B)quantity demanded for coffee decreases.
• C)demand for coffee increases.
• D)demand for coffee decreases.
• E)demand for coffee remains the same.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected to be used, multiplied by the standard cost per unit of material.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate.

June

The sixth month of the year in the Gregorian calendar.

Variable Overhead Efficiency Variance

The difference between the actual variable overheads incurred and the standard variable overheads expected for the actual production, due to efficiency.