According to FASB,when Should a Contingent Liability Be Disclosed

question 1

Multiple Choice

According to FASB,when should a contingent liability be disclosed?

• A)If it is reasonably possible you will lose the lawsuit.
• B)Only if the amount can be estimated and the loss is remote.
• C)If it is probable that the loss will occur,and the amount of the loss can be reasonably estimated.
• D)A contingent liability should never be disclosed.

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Definitions:

Fixed Factory Overhead Volume Variance

A measure used in cost accounting to determine the difference between the budgeted and actual volume of production, affecting fixed overhead costs.

Standard Costs

Standard costs are the predetermined costs associated with manufacturing a product or delivering a service, used as benchmarks to measure performance.

Actual Costs

The real expenses incurred in the production or acquisition of goods and services.

Direct Labor Rate Variance

This measures the difference between the actual cost of direct labor and the expected (or standard) cost, calculated by comparing the actual rates paid to workers versus the planned rates.