Companies Cannot Use TheD

question 201

Multiple Choice

Companies cannot use theD

• A) periodic inventory system under GAAP.
• B) periodic inventory system under IFRS.
• C) perpetual system under IFRS.
• D) None of these answer choices are correct.

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Definitions:

Variable Factory Overhead

Refers to the indirect, variable costs that change with the level of production output, such as utilities for the manufacturing plant.

Controllable Variance

The difference between the actual variable overhead costs and the budgeted variable overhead for actual production.

Direct Materials Quantity Variance

The difference between the actual quantity and the standard quantity of direct materials used in producing a product multiplied by the standard direct material price.

Units

A measure of quantity used to express the amount of a product, service, or resource used or produced in a transaction.