When Should the Manager's Course of Action Be to Revise

question 53

Multiple Choice

When should the manager's course of action be to revise the standard?

• A) When the cause of the variation has been identified
• B) When the variance is acceptable
• C) When the standard is not acceptable
• D) When the standard is acceptable

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Definitions:

Residual Value

The projected worth of an asset upon reaching the conclusion of its service period.

Straight-line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of an asset.

MACRS

Modified Accelerated Cost Recovery System, a method of depreciation in the U.S. that allows businesses to recover investments in certain property through annual deductions.

Property

Physical or intangible assets owned by an individual or business, including land, buildings, and intellectual property.