Match the Following Terms with Their Definitions

question 8

Multiple Choice

Match the following terms with their definitions.
-Net sales

• A)Uses a base year
• B)Inventory and prepaid expenses are subtracted
• C)A liability
• D)Net sales ÷ total assets
• E)Actual sale after returns on discounts
• F)Current assets ÷ current liabilities
• G)What we owe creditors
• H)Data placed side by side
• I)Cash, supplies
• J)Obligations due within one year
• K)Cost of goods for resale
• L)Obligations that are not due for at least one year
• M)Total this period is compared by amount of percent to same total last period
• N)Part of stockholders' equity
• O)What customers owe
• P)Dollars not shown
• Q)Paid in advance
• R)Profit
• S)Revenues and expense for a specific period of time
• T)Prepared as of a particular date
• U)Beginning inventory plus new purchases - ending inventory
• V)True cost of purchases
• W)Includes no plant and equipment assets
• X)Sales - cost of goods sold
• Y)Each liability and equity is analyzed as a percent of the total

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Definitions:

Standard Cost

A predetermined cost of manufacturing, storing, and selling a product, used as a benchmark to measure actual performance and budgeting.

Overhead Controllable Variance

The difference between the actual overhead costs incurred and the budgeted amounts that could be controlled or influenced by management.

Overhead Volume Variance

The difference between the budgeted overhead costs based on standard production volumes and the actual overhead costs incurred due to changes in production activity levels.

Standard Overhead Cost

The predetermined rate of allocating fixed and variable overhead expenses to goods or services produced.