In Relation to the Consumer Guarantee of Acceptable Quality,which of the Following

question 42

Multiple Choice

In relation to the consumer guarantee of acceptable quality,which of the following statements is NOT true?

• A)The guarantee imposes strict liability on the supplier.
• B)Goods must remain acceptable for a reasonable time after sale.
• C)'Acceptable' means they must be reasonable for the purpose described.
• D)The test of acceptability is subjective based on the consumer's description.

Calculate material and labor variances based on standard costing.

Understand the basics of standard costing system including its components and calculations.

Calculate and analyze direct material price variances.

Analyze and calculate variable manufacturing overhead variances, including rate and efficiency variances.

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Definitions:

Standard Labor Hours

Refer to the predetermined amount of time expected to be spent to complete a task under normal conditions.

Direct Labor Rate Variance

The difference between the actual labor rate paid to workers and the standard labor rate, multiplied by the total hours worked.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or delivering a service.

Actual Rate

The current interest rate or the actual cost rate in various financial and business contexts.