Assume That Os

question 118

Multiple Choice

Assume that Os

• A) No entry is necessary.
• B) Cash for $500,000.
• C) Cash for $150,000.
• D) Stock Investments for $150,000.

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Definitions:

Standard Costs

The estimated costs associated with manufacturing, aimed at aiding budgeting and performance evaluation.

Direct Materials Purchases Variance

The difference between the actual costs of materials purchased and the expected (or standard) costs for the materials used.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a product. They are an essential component of the total manufacturing cost of a product.

Variance

The difference between planned or expected performance and actual performance, often analyzed in budgeting and performance management.