A Credit Balance in the Labor Yield Variance Implies

question 50

Multiple Choice

A credit balance in the labor yield variance implies:

• A) the total units produced was greater than the expected number of units given the total labor hours actually used.
• B) the total units produced was less than the expected number of units given the total labor hours actually used.
• C) the total units produced was greater than the expected number of units given the total standard hours allowed.
• D) the total units produced was less than the expected number of units given the total standard hours allowed.

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Definitions:

Spot Rate

The existing selling or buying price of a certain currency for transactions that are completed right away.

Fair-Value Hedge

A hedge that is used to mitigate the risk of changes in the fair value of an asset, liability, or an unrecognized firm commitment.

Cost of the Hedge

The expenditure associated with implementing and maintaining a hedge against financial risk.

Fair-Value Hedge

A hedge of the exposure to changes in fair value of an asset or liability or an identified portion of such an asset or liability that is attributable to a particular risk.