Working Capital Is Calculated by Taking

question 179

Multiple Choice

Working capital is calculated by taking

• A)current assets plus current liabilities.
• B)current assets minus current liabilities.
• C)current assets divided by current liabilities.
• D)current assets times current liabilities.

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Definitions:

Volume Overhead Variances

The differences between the expected fixed overhead costs and the actual fixed overhead allocated, based on the volume of production.

Optimum Standards

Ideal benchmarks set for performance, quality, or efficiency that are considered best under the given conditions.

Attainable Standards

Realistic targets for costs or productivity set by management, which are challenging yet achievable under normal working conditions.

Materials Quantity Variance

The deviation of the actual materials used from the expected standard quantity in production, times the standard unit cost.