The Major Differences Between an S Corporation and a Limited

question 186

True/False

The major differences between an S corporation and a limited liability company are limits on the number of owners and the citizenship status of individuals who are owners.

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Definitions:

Variable Factory Overhead

Costs in the production process that vary with the level of production output, such as utilities and materials.

Controllable Variance

The difference between actual and budgeted costs that management can influence through its actions.

Controllable Variance

A measure in accounting that represents the difference between actual costs and the budgeted amounts that management could control or influence.

Indirect Factory Wages

Wages paid to employees who are not directly involved in production but whose services are necessary for the manufacturing process.