The General Model for Calculating a Quantity Variance Is

question 204

Multiple Choice

The general model for calculating a quantity variance is:

• A) Actual quantity of inputs used × (Actual price − Standard price).
• B) Standard price × (Actual quantity of inputs used − Standard quantity allowed for output).
• C) (Actual quantity of inputs used × Actual price) − (Standard quantity allowed for output × Standard price).
• D) Actual price × (Actual quantity of inputs used − Standard quantity allowed for output).

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Definitions:

Unearned Gym Memberships

Income received by a gym or fitness center from memberships that have been paid for but not yet fully utilized, considered a liability until the services are rendered.

Gym Memberships Revenue

Income received from customers for granting access and use of a gym's facilities.

Adjusting Journal Entry

An entry made in the books at the end of an accounting period to allocate income and expenditure to the correct period.

Accounting Equation

The foundational equation in accounting represented as Assets = Liabilities + Equity, illustrating the structure of a balance sheet.