Which of the Following Statements Related to Pledges Is Incorrect

question 31

Multiple Choice

Which of the following statements related to pledges is incorrect?

• A) Pledges are signed commitments to contribute specific amounts of money on a future date or in installments.
• B) Pledges are recorded as revenues when a promise to give is nonrevocable and unconditional.
• C) Pledges are generally enforceable contracts.
• D) All of these are correct.

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Definitions:

Material Quantity Variance

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

Standard Costing

An accounting method that uses predetermined costs for product costing, performance evaluation, and decision making.

Labour Efficiency Variance

A metric that measures the difference between the actual labor hours used in production and the standard or expected hours, often indicating labor performance.

Variable Overhead

Indirect production costs that fluctuate with the level of production output, such as utilities for the manufacturing plant.