Which of the Following Are NOT Eliminated in the Preparation

question 12

Multiple Choice

Which of the following are NOT eliminated in the preparation of consolidated financial statements?

• A) intercompany payables
• B) the account for the parent company's investment in the subsidiary
• C) intercompany sales and expenses
• D) assets of the subsidiary.

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Definitions:

Total Materials Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.

Overhead Controllable Variance

Overhead Controllable Variance refers to the difference between the actual indirect operational expenses incurred and the budgeted or expected overhead costs that could be influenced by management decisions.

Total Overhead Variance

The difference between the actual overhead incurred and the standard overhead assigned to production.

Overhead Variances

The difference between actual overhead costs and the standard (or expected) overhead costs for a period.