Research and Development Costs Are an Example of A(n)

question 59

Multiple Choice

Research and development costs are an example of a(n) :

• A)committed cost.
• B)differential cost.
• C)discretionary cost.
• D)curvilinear cost.
• E)engineered cost.

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Definitions:

Raw Materials Quantity Variance

The difference between the actual quantity of raw materials used in production and the estimated quantity expected to be used, measured in terms of cost.

Direct Materials Purchases Variance

This measures the difference between the actual cost of direct materials purchased and the expected (or standard) cost of those materials.

Actual Results

The real outcomes or data achieved, as opposed to forecasts or projections.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost, used for budgeting and cost control.