The Materials Yield Variance Will Be Unfavourable When

question 124

Multiple Choice

The materials yield variance will be unfavourable when

• A)the flexible-budget contribution margin is greater than the actual contribution margin.
• B)the actual direct materials input mix is less expensive than the budgeted direct materials input mix.
• C)the input-efficiency variance is favourable.
• D)the actual quantity of total inputs used is greater than the flexible budget for total inputs.
• E)actual unit sales are less than budgeted unit sales.

Differentiate between IFRS and U.S. GAAP in terms of accounting for sales with high risk of non-collection.

Comprehend the accounting treatment for franchise agreements, including revenue recognition and allocation of fees.

Recognize and correct errors in financial statements related to inventory management and capital expenditures.

Apply the percentage-of-completion and completed contract methods for long-term construction contracts and evaluate their conservatism.

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Definitions:

Compounded Daily

Describes the method by which interest is calculated on an investment or loan with the earned interest being added to the principal daily for future interest calculations.

Annual Percentage Yield

The real rate of return earned on an investment, taking into account the effect of compounding interest.

Compounded Daily

Refers to the method of calculating interest where the accumulated interest is added to the principal sum every day.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.