The Difference Between the Actual Cost Incurred and the Standard

question 116

Multiple Choice

The difference between the actual cost incurred and the standard cost is called the:

• A) Flexible variance.
• B) Price variance.
• C) Controllable variance.
• D) Cost variance.
• E) Volume variance.

Understand the importance of standard costing in budgeting and financial planning.

Recognize situations where direct labor variances are applicable or not.

Analyze the causes of material and labor variances to identify potential operational improvements.

Understand and calculate various labor variances, including direct labor rate and time variances.

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Definitions:

Chargaff

Refers to Chargaff's rules, which are empirical rules regarding the ratios of nucleotide bases within DNA molecules: adenine (A) pairs with thymine (T), and cytosine (C) pairs with guanine (G).

Guanine

One of the four main nucleobases found in the nucleic acids DNA and RNA; it pairs with cytosine.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Species

The basic unit of biological classification, defined as a group of individuals that can interbreed and produce fertile offspring.