Which of the Following Is NOT a Major Element of a Service

question 13

Multiple Choice

Which of the following is NOT a major element of a service guarantee?

• A)Must be unconditional
• B)Must be easy to communicate and for the customer to understand
• C)Must include preventive measures for "fail-safing"
• D)Must be meaningful to the customer

Understand the impact of operating cycles on the classification of liabilities.

Identify the requirements for recognition of liabilities under GAAP.

Grasp the concepts related to the measurement and reporting of liabilities.

Understand the treatment and reporting requirements for specific liabilities such as sales tax and warranty expenses.

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Definitions:

Materials Quantity Variance

The financial difference between the actual quantity of materials used in production and the expected quantity, based on standard costs.

February

The second month of the year, often associated with cold weather in the Northern Hemisphere and used as a time period reference in accounting.

Materials Price Variance

The difference between the actual cost of materials and the expected (or standard) cost.

March

The third month of the year in the Gregorian calendar.