While Sales Discounts and Credit Card Discounts Can Only Be

question 94

True/False

While sales discounts and credit card discounts can only be treated as contra revenues, sales returns and allowances are treated as either a contra revenue or a selling expense.

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted or expected amount in a given period, often related to costs or expenditures.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost, indicating how much more or less was spent on materials than anticipated.

Total Expenses

The sum of all costs and expenses associated with operating a business, including both fixed and variable costs.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular cost or expense category.