What Type of Direct Material Variances for Price and Quantity

question 49

Multiple Choice

What type of direct material variances for price and quantity will arise if the actual number of pounds of materials used exceeds standard pounds allowed but actual cost was less than standard cost?

• A)Favorable Favorable
• B)Unfavorable Favorable
• C)Favorable Unfavorable
• D)Unfavorable Unfavorable

Calculate and interpret the conditional labor demand function within the context of a firm's production decisions.

Evaluate the cost implications of fixed input requirements in the short run production process.

Apply linear and non-linear production function models to real-world production problems.

Analyze the impact of input constraints on the cost-minimization problem of a firm.

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Definitions:

Cosureties

Two or more parties who jointly agree to guarantee the debt or obligation of another, sharing the liability.

Conditional Guarantor

A party that agrees to fulfill the obligations of a debtor, but only under specific conditions outlined in an agreement.

Premium

The amount paid for an insurance policy or the cost above the nominal value of something.

Surety

A person or entity that assumes responsibility for another's performance of an obligation, such as the repayment of a loan or the fulfillment of a contract.