The Concept of Checks and Balances Allows

question 32

Multiple Choice

The concept of checks and balances allows

• A) Congress to declare presidential actions unconstitutional.
• B) the Supreme Court to break the tie on legislation.
• C) the President to veto legislation he/she does not support.
• D) Congress to remove members of the Supreme Court.
• E) Options A and B are true.

Understand the impact of inventory turnover and input cost changes on the cost of goods sold under different inventory valuation methods.

Analyze the effects of using FIFO, LIFO, and lower of cost or market methods on financial statements.

Apply the lower of cost or market method to determine inventory valuation.

Comprehend the tax implications and advantages of using LIFO inventory valuation method.

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Definitions:

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies with production volume.

Variable Overhead Efficiency Variance

Variable overhead efficiency variance is the difference between the actual and budgeted variable overhead cost based on the efficient utilization of resources.

Direct Labor-hours

The amount of labor hours that can be directly attributed to the production process, serving as a basis for allocating manufacturing overhead costs in some costing systems.

Variable Manufacturing Overhead Standards

Pre-set rates used to allocate variable overhead costs to individual units of production based on expected usage criteria, such as labor hours.