Vouchers Should Be Used Only for Purchases

question 175

True/False

Vouchers should be used only for purchases. Other expenditures do not need to go through the voucher system.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on the hours worked.

Labor Rate Variance

A specific type of variance that measures the difference between the actual hourly wage paid to workers and the standard rate expected.

January

The first month of the year in the Gregorian calendar.