One Type of Liability That Is Easy to Overlook Is

question 87

Multiple Choice

One type of liability that is easy to overlook is a(n) :

• A)tax liability.
• B)note payable.
• C)account payable.
• D)contingent liability.

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Definitions:

Labor Efficiency

The measure of the amount of work accomplished with a specific amount of labor input.

Labor Quantity Variance

The difference between the actual labor hours worked and the standard hours expected, multiplied by the standard labor rate.

Total Labor Variance

The difference between the actual labor costs incurred and the standard labor costs for the actual production achieved.

Direct Labor Price Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the actual hours worked.