In the WBS,the Name of the Entire Project Is the Top

question 37

Multiple Choice

In the WBS,the name of the entire project is the top box,called Level ____.

• A)0
• B)1
• C)2
• D)3

Identify the significance of favorable and unfavorable variances and their implications on the manufacturing process.

Understand the relationship between actual costs and standard costs in variances calculation.

Recognize the importance of overhead application in cost accounting.

Determine the total manufacturing cost variance and its components.

---

Definitions:

LIFO

"Last In, First Out," an inventory valuation method where the last items put into inventory are the first ones sold.

Merchandise

Goods purchased by a company for the purpose of selling them to customers, typically referring to products in retail businesses.

Ending Inventory

Ending inventory is the total value of all unsold goods a company has at the end of an accounting period, calculated before the new fiscal period begins.

Retail Method

An accounting method used to estimate the ending inventory and cost of goods sold based on the retail price of merchandise.