_____ Depend on the Economics of the Business

question 108

Multiple Choice

_____ depend on the economics of the business.These forces particularly affect production location decisions.

• A)Cost forces
• B)Competitive forces
• C)Quality forces
• D)Government forces
• E)Market forces

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Definitions:

Material Price Variance

A calculation that measures the difference between the actual cost of materials and the standard cost multiplied by the quantity purchased.

Purchased Quantity (PQ)

The total amount of a specific item that a company acquires from suppliers within a given time period, used for inventory management and cost control.

Standard Price (SP)

A predetermined cost that companies use as a benchmark to evaluate actual performance or to plan future financial strategies.

Actual Price (AP)

The real price at which a transaction occurs, as opposed to an estimated or theoretical price.