An Undisclosed Principle Is

question 329

Multiple Choice

An undisclosed principle is:

• A) known to the agent
• B) unknown to the agent
• C) known to third parties to contracts entered into with the agent
• D) known to partners
• E) none of the other choices

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Definitions:

Direct Material Price Variance

Direct material price variance measures the difference between the actual cost of direct materials and the expected (or standard) cost, indicating how well a company manages its material costs.

Actual Price

The real or transacted price of a good, service, or asset, usually the amount of money exchanged in the sale.

Standard Price

A predetermined price established by a company for a product or service, used for budgeting and cost control purposes.

Unfavourable Variances

Unfavourable Variances are cost or revenue variances that indicate a business is performing worse than its budgeted or planned figures.