CPAs Should Always Adhere to the Rules of Conduct of the

question 12

Multiple Choice

CPAs should always adhere to the rules of conduct of the

• A)State board of accountancy
• B)AICPA
• C)IMA
• D)All of the above

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Definitions:

Materials Price Variance

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

Variable Manufacturing Overhead

This refers to the manufacturing overhead costs that vary with the level of production, such as utilities or indirect materials.

Materials Price Variance

The variance between the standard cost and the actual expense of materials, factored by the number of materials acquired.

Direct Labor-hours

The total time that production workers spend working on products or production processes, used as a base for applying manufacturing overhead.