Identify the Correct Statements

question 77

Multiple Choice

Identify the correct statements.

I.Shortening the term of a loan will reduce total interest charges.
II.The interest component of each installment loan payment rises over time.
III.A credit card holder who pays the minimum balance each month will remain in good standing.

• A)I and II, only
• B)II and III, only
• C)I and III, only
• D)I, II and III
• E)I only

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Definitions:

Direct Labor Rate Variance

The difference between the actual cost of labor per hour and the standard cost, multiplied by the total hours worked, used to assess labor cost management.

Standard Hours

Standard hours refer to the set amount of time expected to complete a task or job based on efficiency standards.

Work in Process Inventory

Represents goods that are partially completed in the manufacturing process, not yet ready for sale.

Direct Labor Variances

The difference between the estimated cost of direct labor and the actual direct labor cost incurred.