An Item Consumed in One or a Few Uses, Such

question 300

Multiple Choice

An item consumed in one or a few uses, such as food product and fuel, are referred to as __________.

• A)service items
• B)nondurable goods
• C)durable goods
• D)disposable goods
• E)transitory goods

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Definitions:

Unfavorable Cost Variance

A situation where actual costs exceed the expected or budgeted costs, indicating that a company is spending more than planned.

Revenue Volume Variance

The difference between the actual sales revenue received and the expected revenue, based on the budgeted sales volume.

Revenue Price Variance

The difference between the actual revenue generated by selling a product at its current price and the expected revenue at a predetermined price.

Direct Materials Price Variance

Direct materials price variance is the difference between the actual cost of materials and the standard cost, multiplied by the quantity of materials purchased.