The Comparison of Differences Between Actual and Planned Results

question 169

Multiple Choice

The comparison of differences between actual and planned results

• A) is done by the external auditors.
• B) appears on the company's external financial statements.
• C) is usually done orally in departmental meetings.
• D) appears on periodic budget reports.

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Definitions:

Equivalent Units

A term used in process costing to measure the amount of work done on incomplete products, converted into an equivalent number of fully completed units.

Materials

Substances or components required in the production of goods or in the provision of services.

Weighted-Average Method

An inventory costing method that calculates the cost of goods based on the average cost of all similar items in inventory.

Processing Cost

The expenses related to the production or manufacturing of goods, including labor, materials, and overhead costs.