Consider the Following Transactions: Which of the Above Transactions

question 21

Multiple Choice

Consider the following transactions: Which of the above transactions do NOT increase revenue?

• A) ii and iii only
• B) i and ii only
• C) i and iii only
• D) i, ii and iii

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Definitions:

Direct Labour Hours

The aggregate hours employees devoted to the process of production have logged.

Variable Overhead

Costs that vary with the level of output, such as utilities and labor, as opposed to fixed overheads.

Actual Direct Labour Hours

The actual time spent by labor directly involved in the production of goods or service delivery.

Direct Labour Rate Variance

The difference between the actual labor costs incurred and the standard labor costs for the actual production achieved.