Which of These Is a Business Transaction

question 56

Multiple Choice

Which of these is a business transaction?

• A) Negotiating trading terms with a new supplier.
• B) Buying a new printer.
• C) Meeting with the bank manager to extend the bank overdraft.
• D) Hiring a new contractor to perform work for your business next week.

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Definitions:

Wage Rate

The amount of compensation paid to an employee per unit of time (e.g., hour, day, week) for their labor.

Direct Materials Quantity Variance

This measures the difference between the actual quantity of materials used in production and the standard amount expected to be used.

Standard Costs

Pre-determined or estimated costs for products or services used for budgeting and performance evaluation purposes.

Actual Costs

The genuine costs incurred in the production or acquisition of goods and services.