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:

Cash Receipts

The collection of money (cash, checks, electronic transfers) from sales or other transactions.

Credit Sales

Sales transactions where payment is delayed, extending credit to the purchaser.

Sales

The total amount of goods or services sold by a company within a specific period, reflecting the primary source of its revenue.

Nominal Annual Cost

The cost associated with a financial transaction or investment, expressed as a yearly rate without adjustment for inflation.