Variances

question 54

Multiple Choice

Variances:

• A)Represent the differences between actual costs and the standard costs applied.
• B)Represent the difference between design specifications and production results.
• C)Represent flaws in the production results.
• D)Each of the answers, A, B, and C are correct.

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Definitions:

Reacquisition

The process of buying back or otherwise regaining possession of something previously sold, lost, or given away.

Instrument

A formal legal document, such as a contract, will, bond, lease, or loan, that establishes legal rights and obligations.

Negotiation

A bargaining process in which disputing parties interact informally to attempt to resolve their dispute. Also, the transfer of the rights to a negotiable instrument from one party to another.

Liability

The state of being responsible for something, especially in terms of legal or financial obligations that may arise from actions or transactions.