In Using Variance Reports Management Looks for

question 40

Multiple Choice

In using variance reports management looks for

• A) total assets invested.
• B) significant variances.
• C) competitors' costs in comparison to the company's costs.
• D) more efficient ways of valuing inventories.

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Definitions:

Financial Accounting

The branch of accounting that focuses on the preparation of financial statements for external users.

Extraordinary Gains and Losses

Unusual and infrequent events that significantly affect a company's financial performance, reported separately on the income statement to provide a clearer picture of ongoing operations.

IFRS

International Financial Reporting Standards, a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements.