Which Department Listed Below Would Most Likely Be Responsible for a "Direct

question 197

Multiple Choice

Which department listed below would most likely be responsible for a "direct labour price variance"?

• A) Finance department
• B) Marketing department
• C) Purchasing department
• D) Personnel department

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Definitions:

Fair Value

The estimated price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Book Value

The net value of a company's assets minus its liabilities, often used as a measure of the company's worth on its balance sheet.

Partial Equity Method

An accounting approach where an investor recognizes income from an investee to the extent of dividends received and changes in the investee's equity.

Consolidated Net Income

The total net earnings of a parent company and its subsidiaries after eliminating inter-company transactions and distributions.