All of the Following Could Be Expense Accounts Except

question 23

Multiple Choice

All of the following could be expense accounts except

• A) interest expense.
• B) retained expense.
• C) general and administrative expense.
• D) research and development expense.
• E) depreciation expense.

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Definitions:

Variable Overhead Rate Variance

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

Lubricants

Substances applied to reduce friction between surfaces in mutual contact, which ultimately reduces the heat generated when the surfaces move.

Variable Manufacturing Overhead

Costs that vary with the level of production output and include expenses such as indirect materials, supplies, and utilities used in manufacturing.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on efficient operations.