A Company Sold a Used Operational Asset at a $20,000

question 14

Multiple Choice

A company sold a used operational asset at a $20,000 loss. The loss should be classified on the income statement as:

• A) other income and losses.
• B) other comprehensive income.
• C) an unusual or infrequent item.
• D) an operating expense.

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Definitions:

Overhead Cost Variance

The difference between the actual overhead costs incurred and the standard or expected overhead costs.

Standard Cost Card

A document that lists the standard costs associated with producing a product, including materials, labor, and overhead rates.

Direct Labor Hour

Direct labor hour refers to the time spent by workers directly involved in the production of goods or services.

Overhead Applied

A portion of overhead costs assigned to a particular cost object based on a predetermined rate.