In a Common Size Balance Sheet to Be Used in Vertical

question 214

Multiple Choice

In a common size balance sheet to be used in vertical analysis, the 100% amount is

• A)current assets.
• B)working capital.
• C)total assets.
• D)total stockholders' equity.

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Definitions:

Direct Labor-Hours

The cumulative hours put in by workers directly engaged in manufacturing products or delivering services.

Labor Rate Variance

The variance between the real labor costs and the projected or normative labor costs.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on output levels.

Direct Materials Purchases Variance

The difference between the actual cost of direct materials purchased and the expected cost, based on standard prices and quantities.