Which of the Following Statements Is FALSE

question 32

Multiple Choice

Which of the following statements is FALSE?

• A)Similar to the situation with its accounts receivable,a firm should monitor its accounts payable to ensure that it is making its payments at an optimal time.
• B)Some firms ignore the payment due period and pay later,in a practice referred to as pushing the accounts payable.
• C)Suppliers may react to a firm whose payments are always late by imposing terms of cash on delivery (COD)or cash before delivery (CBD).
• D)If the accounts payable outstanding is 40 days and the terms are 2/10,net 30,the firm can conclude that it generally pays late and may be risking supplier difficulties.

Demonstrate knowledge of the correct selection of tools for specific tasks in mechanical repairs.

Understand the properties and significance of different grades of fasteners and their applications.

Identify and utilize the correct types of tools and drives for mechanical assembly and disassembly.

Recognize the operational mechanisms and activation methods of manual and powered shop tools.

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Definitions:

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted or expected costs, indicating overhead management effectiveness.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as salaries of factory supervisors and rent of the manufacturing facility.

Materials Price Variance

The difference between the actual cost of raw materials and the standard cost multiplied by the quantity of materials purchased, used as a measure of cost control.

Direct Labor Variances

The differences between the budgeted and actual costs of direct labor used in production.