(Q ⊃ E) • (D ⊃ ∼E)

question 198

Multiple Choice

(Q ⊃ E) • (D ⊃ ∼E)

• A) CD-valid.
• B) Invalid.
• C) DD-valid.
• D) MT-valid.
• E) CD-invalid.

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Definitions:

Direct Labor Cost Variance

The difference between the budgeted cost of direct labor and the actual cost incurred.

Cost Variance

The difference between the expected (budgeted) cost and the actual cost incurred.

Actual Costs

The real, observed expenditures incurred as opposed to estimated or standard costs.

Standard Costs

Predetermined or estimated costs of manufacturing, selling, and administrative activities, used for budgeting and assessing performance.