In a Standard Cost Variance Report

question 6

Multiple Choice

In a standard cost variance report,

• A)the largest unfavourable variance is the one that will impact on the company the most.
• B)the largest positive variance can be scanned and cleared the quickest.
• C)the trend or pattern of variances on a period-to-period basis should be monitored.
• D)management must set predetermined variance limits that will dictate what variances must be investigated.

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Definitions:

Peptide Bond

A chemical bond formed between two molecules when the carboxyl group of one molecule reacts with the amino group of the other molecule, releasing a molecule of water (dehydration synthesis).

Hydrophobic Nature

A property of molecules or substances that repel water or are not easily soluble in water.

−OH Group

Hydroxyl group, a functional group consisting of an oxygen atom connected to a hydrogen atom, influencing the molecular properties of alcohol.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, which controls the entry and exit of substances.