When a Manufacturing Company Uses Standard Costing System, an Unfavorable

question 2

True/False

When a manufacturing company uses standard costing system, an unfavorable variance has the effect of being a contra expense.

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Definitions:

Semiannual Coupon

A fixed interest payment on a bond that is made twice a year.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all paid interest and principal repayments.

Market Price

The ongoing financial rate for purchasing or selling an asset or service.

Par Value

The face value of a bond or the stock value stated in the corporate charter, not necessarily reflecting the market value.