We Can Condense the Items That Require Cash Outflow into Basic

question 51

Multiple Choice

We can condense the items that require cash outflow into basic categories.Which of the below is a basic category?

• A)Wages (but not commissions)
• B)Accounts receivable
• C)Long-term financing expenses (interest payments,dividend payments,issuing costs of debt and equity)
• D)All of these

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Definitions:

Sales Volumes

The quantity or number of products sold or services rendered in a particular period of time.

Variable Overhead Cost Variance

The difference between the actual variable overhead costs incurred and the expected (or standard) costs, based on the actual level of activity.

Fixed Overhead Cost Variance

The difference between the actual fixed overhead costs incurred and the expected (or budgeted) fixed overhead costs.

Variable Overhead Efficiency Variance

A calculation that shows the cost impact of the difference between the actual and expected efficiency in using variable overhead resources in production.