USGenerally Accepted Accounting Principles Require the Reporting of Plant Assets

question 110

Multiple Choice

U.S.Generally Accepted Accounting Principles require the reporting of plant assets at ________ on the balance sheet.International Financial Reporting Standards allow the reporting of plant assets at ________ on the balance sheet.

• A)current replacement cost;fair market value
• B)fair market value;fair market value
• C)historical cost;fair market value
• D)historical cost;net realizable value

---

Definitions:

Standard Quantity

The predetermined amount of materials, labor, or overhead that should be used in the production process, serving as a benchmark for measuring efficiency.

Variable Overhead Spending Variance

The difference between the actual variable overheads incurred and the expected costs based on standard overhead rates.

Standard Quantity

The expected or predetermined amount of materials or input required to produce a single unit of product.

Standard Price

A predetermined cost assigned to materials, labor, and overhead, used as a benchmark against which the actual costs are compared.