Which of the Following Statements Is Correct

question 143

Multiple Choice

Which of the following statements is correct?

• A) The sale of an unincorporated sole proprietorship is always treated as the sale of the individual business assets.
• B) The sale of a partnership is treated as the sale of the individual assets only if the sales transaction is structured as the sale of the individual assets.
• C) The sale of a corporation is either treated as the sale of the corporate stock or as the sale of the individual assets.
• D) Only a. and b. are correct.
• E) a., b., and c. are correct.

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Definitions:

Volume Overhead Variances

The difference between the budgeted overhead costs based on expected volume and the actual overhead costs incurred.

Controllable Variance

The difference between actual and budgeted performance that can be directly managed or controlled by responsible managers.

Actual Direct Labor Hours

The actual amount of labor time spent on producing goods, tracked to assess efficiency and productivity.

Management By Exception

A management strategy where managers intervene only when performance deviates significantly from standards, allowing them to focus on significant issues.