Which of the Following Is Not an Indication That Control

question 25

Multiple Choice

Which of the following is not an indication that control over goods or services have transferred at a point in time?

• A) Customer has accepted the goods or service.
• B) Customer has legal title to the goods.
• C) Identifying the contract with a customer.
• D) Business has a right to payment.

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Definitions:

Standard Price

A predetermined cost assigned to materials, labor, and overhead used in budgeting and variance analysis.

Direct Materials

Components that are directly associated with the creation of a product and form a crucial part of the completed item.

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.

Standard Quantity

The predetermined or budgeted amount of materials expected to be used in the production of a product, based on efficiency and productivity standards.