Estimated Liabilities Commonly Arise from All of the Following Except

question 127

Multiple Choice

Estimated liabilities commonly arise from all of the following except:

• A)Warranties.
• B)Vacation benefits.
• C)Income taxes.
• D)Employee benefits.
• E)Unearned revenues.

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Definitions:

Total Labor Variance

Represents the difference between the budgeted or standard cost of labor and the actual cost incurred, capturing inefficiencies or savings in labor costs.

Overhead Controllable Variance

The difference between the actual overhead incurred and the overhead that should have been incurred, given the level of activity, which is under the control of management.

Overhead Volume Variance

The difference between the expected (budgeted) and the actual overhead costs incurred, due to variations in the level of produced or sold volume.