If the Standard to Produce a Given Amount of Product

question 18

True/False

If the standard to produce a given amount of product is 2,000 units of direct materials at $12 and the actual was 1,600 units at $13, the direct materials quantity variance was $4,800 favorable.

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Definitions:

Cash Receipts

The collection of cash, typically from customers, which is recorded during the period it is received.

Cash Disbursements

The outflow of cash to pay for goods, services, and financial obligations during a specific period of time.

Cash Receipts

The collection of money, including cash, checks, and credit card payments, received by a business during a period.

Minimum Cash Balance

The lowest amount of cash that a company or individual aims to hold in order to meet operational and transaction needs.