The Matching Principle States That Expenses Should Be Matched with Revenues

question 130

True/False

The matching principle states that expenses should be matched with revenues to determine net income for an accounting period.

Understand the strategies companies use to control the costs of employee healthcare benefits.

Understand the impact of benefits and services on employee motivation and organizational effectiveness.

Grasp the ethical implications of benefit changes and how organizations can protect their employees' interests.

Recognize historical advancements in employee benefits and their motivations.

---

Definitions:

Materials Price Variance

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

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, which can affect costs.

Actual Price

The real price at which a transaction occurs, as opposed to an estimated or listed price.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services, reflecting in the cost of goods sold.