A Corporation Is

question 156

Multiple Choice

A corporation is:

• A)A business legally separate from its owners.
• B)Controlled by the FASB.
• C)Not responsible for its own acts and own debts.
• D)The same as a limited liability partnership.
• E)Not subject to double taxation.

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Definitions:

Standard Cost System

A cost accounting system that uses cost standards for materials, labor, and overhead to control actual costs and analyze variances.

Favourable Variance

A financial term referring to a situation where actual costs are less than budgeted costs, or actual revenues exceed budgeted revenues.

Variable Overhead Efficiency Variance

A measure of the difference between the expected variable overhead based on standard costs and the actual variable overhead incurred.

Flexible Budget

A report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.