Evaluated Receipts Settlement Is ________

question 77

Multiple Choice

Evaluated Receipts Settlement is ________.

• A) a streamlined process that bypasses paper documents altogether
• B) a process that eliminates the need for separation of duties
• C) a procedure that compresses the payment approval process into a single step by comparing the receiving report to the purchase order
• D) an organizational plan and all the related measures adopted by an entity to safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate and reliable accounting records

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Definitions:

Direct Materials Purchases Variance

A measure used in accounting to analyze the difference between the budgeted cost of materials needed for production and the actual cost incurred.

Actual Production

The real quantity of goods or services produced in a specified period, as opposed to planned or expected production levels.

Labor Rate Variance

The difference between the actual labor costs incurred and the standard labor costs expected for the labor hours worked.

Standard Costs

The estimated costs associated with manufacturing, aimed at aiding budgeting and performance evaluation.