All of the Following Add to the Costs of Coupons

question 276

Multiple Choice

All of the following add to the costs of coupons except which?

• A)misredemption
• B)redemption
• C)customer handling
• D)clearinghouse costs
• E)the advertisement to deliver it

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Definitions:

Direct Materials Quantity Variance

This measures the difference between the actual quantity of materials used in production and the standard amount expected to be used.

Standard Costs

Pre-determined or estimated costs for products or services used for budgeting and performance evaluation purposes.

Actual Costs

The genuine costs incurred in the production or acquisition of goods and services.

Direct Materials Price Variance

The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity purchased.