A Variance Is Considered to Be

question 53

Multiple Choice

A variance is considered to be

• A)the gap between an actual result and a benchmark amount.
• B)the required number of inputs for one standard output.
• C)the difference between an actual result and a budget amount.
• D)the difference between a budgeted amount and a standard amount.
• E)a standard.

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Definitions:

Major Overhaul

Extensive repairs and maintenance on an asset that significantly extend its useful life or enhance its performance.

Non-Cancelable

A term referring to agreements or contracts that cannot be terminated or voided by one or both of the parties involved before the end of the term without penalties.

Service Life

The estimated period an asset is expected to be useful and productive for its intended purpose before it becomes obsolete or too costly to maintain.

Present Value

The current value of a future amount of money or stream of cash flows, discounted at a specific interest rate.