Which of the Following Bodies Formulates the Generally Accepted Accounting

question 34

Multiple Choice

Which of the following bodies formulates the generally accepted accounting principles (GAAP) ?

• A) Accounting Disclosure Board
• B) Financial Accounting Standards Board
• C) Association of Certified Fraud Examiners
• D) Securities and Exchange Commission
• E) American Institute of Certified Public Accountants

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Definitions:

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a chosen activity base.

Denominator Level

In cost accounting, it refers to the standard quantity or activity used in calculating the predetermined overhead rate.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to products, changing with the level of production.

Efficiency Variance

A measure in cost accounting that calculates the difference between the actual quantity of input used and the standard amount expected to be used, multiplied by the standard price.