The Function of Money That Expresses Prices and Contracts for Deferred

question 84

Multiple Choice

The function of money that expresses prices and contracts for deferred payments in terms of the monetary unit is referred to as

• A) store of purchasing power
• B) standard of value
• C) medium of exchange
• D) credit money

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Definitions:

Variable Overhead Efficiency Variance

A measure in managerial accounting that evaluates the efficiency of variable overhead resource utilization by comparing the actual hours worked to the standard hours allowed for the actual production achieved.

Standard Costing

An accounting method that assigns predetermined costs to cost units, used to control costs and measure performance.

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours expected for the level of production achieved.

Variable Overhead

Indirect manufacturing costs that vary with the level of production output, such as utilities and maintenance expenses.