Comparative Reports in Which Each Item Is Expressed as a Percentage

question 82

Multiple Choice

Comparative reports in which each item is expressed as a percentage of a base amount without dollar amounts are called:

• A) comparative financial statements.
• B) common-size statements.
• C) cash flow analysis.
• D) horizontal analysis.

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Definitions:

Direct Labor Time Variance

The difference between the actual hours and the standard hours of direct labor spent producing a product multiplied by the standard direct labor rate per hour.

Direct Labor

The cost of employee wages that is directly associated with the manufacturing of products or the provision of services.

Unfavorable

A term used to describe a situation or outcome that is not advantageous, detrimental, or negatively impacts objectives.

Direct Labor Time Variance

The difference between the estimated time to produce a good or service and the actual time taken, multiplied by the hourly labor rate.