Use the Present Value and Future Value Tables Included in Appendix

question 51

Multiple Choice

Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
- The two major categories of liabilities on a typical balance sheet are

• A) Current Liabilities and Long-Term Liabilities
• B) Wages Payable and Long-Term Liabilities
• C) Accounts Payable and Notes Payable
• D) Current Liabilities and Bonds Payable

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Definitions:

Variable Overhead Efficiency Variance

The difference between the expected variable overhead costs based on standard costing and the actual variable overhead incurred, attributable to efficiency.

Materials Price Variance

The difference between the actual cost of raw materials and the standard cost expected to be paid, reflecting changes in price.

Raw Materials Price Variance

A measure of the difference between the actual cost of raw materials and the expected (standard) cost.

Labor Efficiency Variance

The difference between the budgeted and actual hours worked, multiplied by the standard labor rate, indicating efficiency in labor usage.