The Difference Between the Total Standard Cost and the Total

question 110

Multiple Choice

The difference between the total standard cost and the total actual cost is the

• A)cost variance.
• B)labor rate variance.
• C)materials price variance.
• D)standard cost card amount.

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Definitions:

Paid-In Capital

Capital contributed to a corporation by the stockholders and others.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation and a claim on part of the company’s profits.

Retained Earnings

Accumulated net income of a company that has not been distributed to shareholders as dividends.

Paid-In Capital

Paid-in capital is the amount of money that a company has received from shareholders in exchange for shares of stock.