In a Merchandising Company,________

question 15

Multiple Choice

In a merchandising company,________.

• A)selling and administrative costs are period costs
• B)insurance expense on the corporate building is a product cost
• C)work in process inventory may be present
• D)finished goods inventory may be present

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Definitions:

Standard Price

A predetermined cost assigned to materials, labor, and overhead, used in budgeting and variance analysis.

Revenue Volume Variance

This reflects the difference between actual revenue and the expected revenue that was based on the budget, often attributed to changes in sales volume.

Planned Selling Price Sep## Actual Units Sold

This represents the comparison between the pre-established price at which goods were intended to be sold and the actual number of units sold.

Significant Variances

Major discrepancies between planned and actual figures in budgets, costing, or any financial metric.