Which of the Following Is an Asset Use Transaction

question 67

Multiple Choice

Which of the following is an asset use transaction?

• A)Purchased land for cash
• B)Recorded rent expense at the end of the period
• C)Borrowed cash from the bank
• D)Accrued salary expense at the end of the period

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Definitions:

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost, indicating how effectively a company controls its materials costs.

Raw Material Purchase

The process of acquiring the basic materials needed for production of goods.

Fixed Manufacturing Overhead

Fixed manufacturing overhead costs are those production expenses that do not vary with the volume of production, such as salaries of managerial staff and rent of the factory.

Budgeted Fixed Manufacturing Overhead

The predetermined amount of fixed overhead expenses expected to be incurred in the manufacturing process.