If Actual Costs Are Greater Than Standard Costs There Is

question 77

Multiple Choice

If actual costs are greater than standard costs there is a(n)

• A) normal variance.
• B) unfavorable variance.
• C) favorable variance.
• D) error in the accounting system.

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Definitions:

Accounting Records

Documents and books that keep track of the financial operations and transactions of an entity or individual, serving as evidence of financial performance and position.

Computer

An electronic device capable of processing, storing, and retrieving data, used for a wide range of tasks from computing to entertainment.

Double-Entry Bookkeeping System

An accounting technique which records each transaction in two accounts, ensuring the total debits equal total credits.

Fully Integrated Ledger System

A fully integrated ledger system is an accounting system where all the different financial and accounting records are comprehensively interconnected and maintained within a single framework.