A Share-Based Payment Is a Transaction That Entitles Another Party

question 32

True/False

A share-based payment is a transaction that entitles another party to receive a cash payment with the amount paid dependent on the price of the entity's shares or other equity instruments.

Recognize the control equation and its components.

Identify and apply the four steps of the control process.

Distinguish between output and input standards.

Explain the concept of market, clan, and self-control within organizations.

---

Definitions:

Direct Labor-hours

The total hours of labor directly involved in the production of goods, often used as a basis for allocating manufacturing overhead in process costing.

Variable Manufacturing Overhead Standards

Pre-established rates or quantities that are used to assign variable overhead costs to products based on levels of activity such as labor or machine hours.

Variable Overhead Rate Variance

The variance between the actual variable overhead costs that were incurred and the anticipated variable overhead calculated according to the real amount of activity.

Supplies Cost

The expense incurred to acquire supplies necessary for the production of goods or the operation of a business.