Remainders and Reversions

question 69

Multiple Choice

Remainders and reversions:

• A) are both interests where property can or will return to the grantor
• B) differ in that a remainder is held by someone other than the grantor and the reversion is held by the original grantor
• C) cannot be bought or sold because they are future interests
• D) often exist when there is also a fee simple absolute ownership

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Definitions:

Manufacturing Cost Variance

The difference between the actual manufacturing costs and the standard or budgeted costs.

Actual Costs

The realized expenses incurred during the production or acquisition of goods and services.

Standard Costs

Predetermined costs for materials, labor, and overhead used as a benchmark to assess the performance of actual costs.

Direct Labor Time Variance

The difference between the estimated time to complete a job and the actual time taken, impacting manufacturing costs.