For Each of the Following Statements, Select the Answer That

question 27

Multiple Choice

For each of the following statements, select the answer that correctly identifies the cause and effect. Natural disasters like hurricanes often cause the price of gasoline to rise.

• A) Cause: rise in the price of gasoline Effect: natural disasters like hurricanes
• B) Cause: natural disasters like hurricanes Effect: rise in the price of gasoline

---

Definitions:

Standard Costing

A cost accounting method that uses standard costs for direct materials, labor, and overhead to help managers control costs by comparing expected costs to actual costs.

Isolating Variances

A process in managerial accounting for identifying and analyzing differences between actual and expected performance.

Direct Materials

Raw materials directly traceable and assignable to a manufactured product as it is being produced.

Direct Labour

The labor costs directly attributable to the production of goods or the provision of services.