Lessors Classify and Account for All Leases That Do Not

question 102

True/False

Lessors classify and account for all leases that do not quqlify as direct-financing or sales-type leases as operating leases.

---

Definitions:

Spending Variances

The difference between actual spending and budgeted or planned spending in various categories.

Cost Drivers

Factors that cause changes in the cost of an activity or process, which are used to allocate costs based on actual usage or consumption.

Vocational School

An educational institution that provides specialized training and education aimed at preparing students for specific trades, crafts, or careers.

Activity Variances

The differences between planned or expected levels of activity (and associated costs) and actual outcomes, often used for performance evaluation and control.