Triple Bottom Line Reporting

question 1

Multiple Choice

Triple bottom line reporting

• A) reinforces profit as the primary objective of companies.
• B) recognises the legal and non-legal obligations of a company to all stakeholders with a legitimate interest in the company.
• C) is mandatory in Australia.
• D) is where a result is produced for financial, social and environmental benefit.

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Definitions:

Direct Labor Time Variance

The difference between the actual time taken to produce a good or service and the estimated time.

Standard Rate

A predetermined charge or cost that applies to a specific service, transaction, or product under typical conditions.

Standard Direct Hours

Standard direct hours represent the estimated amount of time that should be spent by labor to produce a unit of output under normal conditions.

Fixed Factory Overhead Volume Variance

A measure used to assess the difference between the budgeted and the actual volume of production, impacting the budgeted fixed overhead costs.