For External Reporting Purposes Variances Relating to Over and Under

question 45

True/False

For external reporting purposes variances relating to over and under applied overhead should be treated as an expense.

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Definitions:

Measurement Standard

Principles and rules that determine the method and basis of measuring and presenting financial information and values in financial statements.

Operating Results

The financial outcomes derived from a company's regular, core business operations, excluding any extraordinary items or revenues from investments.

Discrete Financial Information

Financial data that is separate and distinct, not continuous, often referring to specific reporting periods.

Generate Revenue

The process of creating income for a business through its operations, such as selling goods or providing services.