Which of the Following Is a True Statement Regarding Daria's

question 21

Multiple Choice

Which of the following is a true statement regarding Daria's statement that she had no personal liability?

• A)She was incorrect.
• B)She was correct.
• C)She was correct only if she can establish that she has at least 5 employees.
• D)She was incorrect unless she signed an agreement with a financial institution in order to get a loan for the business and agreed in the document that she would not accept personal liability for any losses.
• E)She was correct only if she can establish that she has paid all her business taxes on time.

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Definitions:

Direct Labour

The wages and other compensation paid to employees who are directly involved in producing goods or providing services.

Labour Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost of labor for the actual production level.

Labour Efficiency Variance

A measure used in accounting to indicate the difference between the actual number of labor hours used and the standard number of hours that should have been used, multiplied by the standard labor rate.

Variable Overhead

Costs that vary with the level of production or business activity, such as utilities and indirect materials, but do not directly correlate to direct labor or materials.