Where There Is an Asset Revaluation Decrement That Does Not

question 12

Multiple Choice

Where there is an asset revaluation decrement that does not reverse a previous increment, the amount is debited to:

• A) an expense account.
• B) retained profits.
• C) revaluation surplus.
• D) share capital.

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Definitions:

Favorable Variances

Differences between actual and budgeted or standard costs that result in better-than-expected financial performance.

Unfavorable Variances

Differences where actual costs are higher than standard or expected costs in budgeting.

Cost Variance

The difference between the estimated cost of a project or production and the actual cost incurred.

Standard Cost

A predetermined cost of manufacturing, established based on historical data, for the purpose of budgeting and performance evaluation.