Which of the Following Is an Example of the Conversion

question 133

Multiple Choice

Which of the following is an example of the conversion strategy?

• A)A corporation paying its shareholders a $20,000 dividend.
• B)A corporation paying its owner a $20,000 salary.
• C)A high tax rate taxpayer investing in tax exempt municipal bonds.
• D)A cash-basis business delaying billing its customers until after year end.
• E)None of the choices are correct.

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Definitions:

Labor Efficiency Variance

A measure used to determine how well labor resources are used, by comparing the standard labor hours supposed to be used to produce goods versus the actual hours used.

Standard Cost System

An accounting system that uses standard costs for cost control and decision-making purposes.

Actual Results

The real, achieved outcomes of business activities, such as sales, expenses, and profits, which are compared against planned or forecasted results.

Standard Hours

The predetermined amount of time expected to complete a task, job, or project.