Non-Current Liabilities Such as Bonds Payable and Instalment Notes Payable

question 79

True/False

Non-current liabilities such as bonds payable and instalment notes payable are financial liabilities because there is a contract between two or more parties to pay cash in the future.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials.

Materials Price Variance

The difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased.

Standard Quantity

The expected or established quantity of materials or labor expected to be used during a manufacturing process or production cycle.

Standard Price

Standard price is the pre-determined cost that a company expects to pay for goods, materials, or services, used in budgeting and cost control.