Classify Each of the Following Independent Statements

question 125

Multiple Choice

Classify each of the following independent statements:.
-Proceeds of an insurance policy on decedent's life. Decedent's son purchased the policy and is its owner and beneficiary.

• A)Some or all of the asset is included in the decedent’s gross estate.
• B)None of the asset is included in the decedent’s gross estate.

Determine the actual cost of direct labor through variance analysis.

Grasp the essentials of flexible budgets, their preparation, and variance analysis for effective managerial decision-making.

Understand the concept and calculation of fixed and flexible budgets.

Calculate and analyze variance analyses for direct materials, direct labor, and overhead costs.

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Definitions:

Negligent Misrepresentation

A false statement of material fact made by a person who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

Reasonable Care

The degree of caution and concern an ordinarily prudent and rational person would use in similar circumstances, typically used in legal contexts.

Voidable Contract

An agreement that may be annulled or declared void by one of the parties due to certain legal deficiencies or circumstances.

Rescinded

The act of revoking, canceling, or repealing a contract, decision, or agreement, making it as if it never existed.