Which of the Following Should Not Be Included in the Plant

question 8

Multiple Choice

Which of the following should not be included in the plant assets (property, plant, and equipment) classification?

• A) Land on which warehouse sits
• B) Building housing corporate headquarters
• C) Parking lot used by visitors
• D) Land held for investment.

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Definitions:

Total Variance

The overall difference between planned or standard costs and the actual costs incurred.

Total Labor Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor over a period.

Total Overhead Variance

The difference between actual overhead costs incurred and overhead costs allocated to production, based on standard rates, during a specific period.

Direct Labor Price Variance

A measure of the difference between the actual cost of direct labor and the standard cost of direct labor multiplied by the actual hours worked.