Warranty Liability May Be Imposed on Both Nonsigners and Signers

question 39

True/False

Warranty liability may be imposed on both nonsigners and signers of an instrument.

---

Definitions:

Direct Materials Cost Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.

Direct Materials Quantity Variance

The difference between the actual amount of direct materials used in production and the expected amount, based on standards, multiplied by the standard cost per unit.

Variable Costs

Expenses that fluctuate in direct proportion to the amount of production or sales, including items like labor and materials.

Fixed Costs

Expenses that don't change in total over a period, regardless of the level of output or sales.