Which One of the Following Valuations of Operating Assets Is

question 2

Multiple Choice

Which one of the following valuations of operating assets is NOT readily available from the accounting records?

• A)cost
• B)book value
• C)market value
• D)both cost and market value

---

Definitions:

Labor Efficiency Variance

The difference between the actual labor hours used to produce a good or service and the standard labor hours expected to be used, measuring labor efficiency.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on activity levels.

Favorable

A term used in accounting and finance to describe outcomes or variances that are better than anticipated, indicating a positive performance against the budget or forecast.

Unfavorable

A term used to describe a variance or outcome that results in a worse financial position than expected or budgeted.