The Direct Labor Flexible Budget Variance Can Be Divided into Two

question 44

Multiple Choice

The direct labor flexible budget variance can be divided into two variances:

• A)rate variance and price variance.
• B)price variance and usage variance.
• C)rate variance and efficiency variance.
• D)price variance and efficiency variance.

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Definitions:

Amortization of Bond Discount

The gradual reduction or write-off of the difference between the face value and the lower issuing price of a bond over its term, impacting the issuer's financial statements.

Interest Expense

The financial obligation incurred from borrowing money over a set time frame.

Straight-Line Amortization

Straight-line amortization is a method of gradually reducing the cost of an intangible asset over its useful life in equal annual amounts.

Carrying Value

The book value of an asset on a company's balance sheet, calculated as the original cost minus accumulated depreciation and impairment charges.