A Component That Is Valuation-Relevant,but Is Not Expected to Persist

question 122

Multiple Choice

A component that is valuation-relevant,but is not expected to persist into the future is a

• A)permanent earnings component.
• B)transitory earnings component.
• C)noise component.
• D)quiet component.

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Definitions:

Investigation

A detailed inquiry or systematic examination to discover facts or information about a specific subject or area of concern.

Labor Quantity Variance

The difference between the actual hours of labor used and the standard hours expected for the level of production, often related to efficiency.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process.

Payroll

The total amount of wages, salaries, and other earnings paid by a business to its employees.