INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 116

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-Brokerage commissions on [stock | bond] transactions are likely to be a flat fee per unit.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Quantity Standard

A predetermined benchmark of the amount of input that should be used in the production of goods or services.

Quantity Variance

The difference between the actual quantity of material used in production and the standard quantity expected to be used.

Direct Materials

Raw materials that can be directly associated with the production of a product and are an integral part of the finished product.

Actual Quantity

The real amount of goods or materials used in production, as opposed to the estimated or budgeted amount.