Management's Intent Determines Whether an Available-For-Sale Security Is Classified as Long-Term

question 123

True/False

Management's intent determines whether an available-for-sale security is classified as long-term or short-term.

---

Definitions:

Fixed Overhead

Indirect costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Budget Variance

The difference between budgeted or planned financial activity and the actual financial performance.

Fixed Overhead

Costs that do not change with the level of production or business activity, such as rent, salaries of permanent staff, and insurance.

Volume Variance

The difference between the budgeted and actual volume of units sold or produced, impacting direct materials, direct labor, and overhead costs.