Which of the Following Is $\underline{not}$ A True Statement?
A)There Is Empirical Evidence That Future Cash

question 37

Multiple Choice

Which of the following is $\underline{not}$ a true statement?

• A)There is empirical evidence that future cash flows are better forecasted with accrual data than with cash flow data.
• B)Accrual accounting numbers incorporate the attribute that determines firm valuation-net cash flow data.
• C)Changes in reported accounting earnings affect firm valuation through changes in stock prices.
• D)The value to investors of the information in financial reporting lies in its role as an historical record.

Identify the components of manufacturing costs, including direct materials, direct labor, and factory overhead.

Comprehend the flow and accounting treatment of materials, labor, and overhead in a job order costing system.

Record and interpret journal entries related to the job order cost accounting cycle.

Understand the role and calculation of direct labor in determining overhead rates and product costs.

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Definitions:

Labor Quantity Variance

The difference between the actual hours worked and the standard hours allowed for the work performed, multiplied by the standard hourly wage rate.

Produced

The completed output of goods or services as a result of manufacturing or production processes.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of those materials.

Direct Materials Quantity Variance

The variance between the real amount of materials consumed in production and the anticipated standard amount, multiplied by the cost per unit according to standards.