Annual Growth Rates for Individual Firms in the Toy Industry

question 86

Multiple Choice

Annual growth rates for individual firms in the toy industry tend to fluctuate dramatically,depending on consumers' tastes and current fads.Consider the following growth rates (in percent) for two companies in this industry,Hasbro and Mattel. Which of the following are the null and alternative hypotheses in order to determine if the variance of growth rates differs for the two firms?

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Definitions:

Materials Price Variance

The difference between the actual cost of raw materials and the standard or expected cost, multiplied by the quantity of materials purchased.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or budgeted) variable overhead based on a standard rate.

Labor Efficiency Variance

measures the difference between the actual labor hours used and the standard labor hours expected for the production achieved, indicating labor efficiency.

Labor Efficiency Variance

A measure of the difference between the actual number of labor hours used and the standard number of labor hours expected to produce a certain level of output.