In Which of the Following Ways Is the Management of a Company

question 141

Multiple Choice

In which of the following ways is the management of a company accountable to its communities?

• A)making timely interest payments to creditors and dividend payments to investors
• B)ensuring the company's environmental impact is not harmful to its area of operations
• C)providing a capital return on the shareholders' investment
• D)repaying principal and interest to the suppliers

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Definitions:

Standard Price Per Pound

A predetermined cost set for a pound of material, used in budgeting and costing to assess efficiency and variances in purchasing or production.

Total Direct Materials Cost Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost.

Total Variable Overhead Variance

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

Material Quantity Variance

A financial measurement that calculates the difference between the expected amount of materials and the actual amount used, affecting production costs and efficiency.