A Limit on the Amount You Must Keep on Deposit

question 47

Multiple Choice

A limit on the amount you must keep on deposit in order to earn interest or avoid a service charge is an example of a(n) :

• A) holding period.
• B) restriction.
• C) overdraft fee.
• D) share draft.
• E) certified deposit fee.

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Definitions:

Variances

The differences between planned or expected results and actual outcomes in budgeting and accounting.

Material Price Variances

The difference between the actual cost of materials and the expected or budgeted cost of materials in production processes.

Materials Account

An account used to track the costs of raw materials that are either in stock or being used in production processes.

Standard Cost

A predetermined cost of manufacturing a product or providing a service, used for budgeting and performance evaluation.