What Are Some Common Causes of Usage Variances

question 87

Essay

What are some common causes of usage variances?

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Definitions:

Replenish

The act of refilling or restoring to its original level, often used in reference to inventory or petty cash funds.

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses.

Credit To Cash

An accounting entry that increases the cash balance in a company's books.

Petty Cash Fund

A small amount of cash on hand used for paying expenses too small to merit writing a check or using a credit card.