The Decline in Starting New Businesses

question 62

Multiple Choice

The decline in starting new businesses

• A)is not concentrated in one geographic area.
• B)is concentrated in the Northeast states.
• C)is concentrated in the Gulf Coast states.
• D)is concentrated in the Rust Belt.

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Definitions:

Unfavorable

A term used to describe a variance or difference that negatively impacts financial performance.

Labor Rate Variance

The difference between the expected cost of labor at standard rates and the actual cost of labor incurred.

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used, evaluated in terms of cost.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard hours worked and standard labor rate.