Which of the Following Is Not a True Statement About

question 163

Multiple Choice

Which of the following is not a true statement about a multiple-step income statement?

• A)Operating expenses are similar for merchandising and service enterprises.
• B)There may be a section for non-operating activities.
• C)There may be a section for operating assets.
• D)There is a section for cost of goods sold.

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Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the quantity expected, multiplied by the standard cost per unit.

Standard Quantity

The expected amount of materials or input needed to produce a unit of output.

Actual Materials

The actual amount of materials used in the production process, measured in physical units or cost.

Standard Price

A predetermined cost for a unit of material, labor, or overhead anticipated in the budgeting process, against which actual costs are compared.