Internal Users of Financial Information

question 129

Multiple Choice

Internal users of financial information:

• A) Are not directly involved in operating a company.
• B) Are those individuals involved in managing and operating the company.
• C) Include shareholders and lenders.
• D) Include directors and customers.
• E) Include suppliers, regulators, and the press.

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Definitions:

Cooling Coil

A device within an air handling unit or HVAC system used to lower air temperature and remove moisture by passing air over a cold surface.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the expected (budgeted) costs.

Standard Cost System

An accounting practice that uses predetermined costs for products or services to help managers control expenditures by comparing these standards with actual costs.

Commercial Refrigerators

Cooling appliances designed for commercial use to store perishable goods at required temperatures to prevent spoilage.