The Replacement Value of the House Less Accumulated Depreciation (Which

question 60

Multiple Choice

The replacement value of the house less accumulated depreciation (which is the decline in value over time due to wear and tear) is known as

• A)actual cash value.
• B)replacement value.
• C)market value.
• D)depreciation.
• E)none of the above.

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Definitions:

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, multiplied by the standard labour rate.

Quality Raw Materials

High-standard, unprocessed or minimally processed inputs used in the production of goods, directly affecting the quality of the finished product.

Labour Time Standard

A benchmark or norm established for the amount of time required to perform a specific task or activity under normal working conditions.

Direct Material Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost.