If the Actual Direct Labor Hours Spent Producing a Commodity

question 36

Multiple Choice

If the actual direct labor hours spent producing a commodity differs from the standard hours,the variance is a

• A) time variance
• B) price variance
• C) quantity variance
• D) rate variance

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Definitions:

Receivable

An amount of money owed to a firm by its customers as a result of the firm extending credit to them.

Receivables

Money owed to a business by its clients or customers for products or services delivered but not yet paid for.

Money Claims

Legal rights or entitlements to a certain amount of money, which can be the result of debts, damages, or other financial obligations owed to a person or entity.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable.