If Recording a General Long-Term Liability in a Governmental Fund

question 8

True/False

If recording a general long-term liability in a governmental fund upon issuing a bond, the credit should be to a bonds payable account.

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Definitions:

Materials Quantity Variance

The difference between the expected and actual quantity of materials used in production, impacting materials cost.

Standard Quantity

This represents the expected amount of materials or inputs needed to produce a unit of product under normal conditions.

Actual Output

Actual output is the factual quantity of goods or services produced within a specified time frame, representing productivity.

Standard Price

The predetermined cost assigned to materials, labor, or overhead for the purposes of budgeting and variance analysis.