Which of the Following Statements Is True of Cost Variances

question 129

Multiple Choice

Which of the following statements is true of cost variances and efficiency variances?

• A)They pertain to the difference between the static budget and actual results.
• B)They pertain to the difference between the flexible budget and actual results.
• C)They pertain to the difference between the flexible budget and the static budget.
• D)They pertain to the difference between the static budget and the previous year's actual results.

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Definitions:

Modified Cash Basis

An accounting method that combines elements of both cash and accrual accounting, recognizing revenues when they are received and expenses when they are paid, with some adjustments.

Warranty Revenue Recognition

The accounting process of recognizing revenue from warranties provided, typically over the period the warranty covers.

Coupon Redemption

The process of a bondholder or an investor submitting a bond's coupon to the issuer to receive interest payment.

Advertising Cost

Expenses incurred to promote products or services to potential consumers through various media channels.