Under the Revenue Recognition Principle,you Can Recognize Revenue Before You

question 31

True/False

Under the revenue recognition principle,you can recognize revenue before you earn it.

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Definitions:

Materials Quantity Variance

The difference between the expected amount of materials needed for production and the actual amount used.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or budgeted) cost.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard amount expected to be used, multiplied by the standard cost per unit.

Standard Cost Variances

The differences between the actual costs incurred and the standard costs set for producing a good or service.