Net Working Capital Is ________

question 91

Multiple Choice

Net working capital is ________.

• A) the combined total of a firm's equity capital and net losses
• B) the difference between a firm's current assets and current liabilities
• C) the difference between a firm's expected profits and current debts
• D) any currency deposited in a bank outside its country of origin

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Definitions:

Direct Labor Cost Variance

The difference between the budgeted or expected cost of direct labor and the actual cost incurred.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the business.

Unfavorable Variance

A financial term describing a situation where actual costs exceed budgeted or planned costs.

Standard Cost

A predetermined cost of manufacturing a product or providing a service, used as a benchmark to measure performance and efficiency.