Fact Pattern 35-1

question 38

Multiple Choice

Fact Pattern 35-1
Ray is a shareholder of Small Biz Company (SBC) . When the direc?tors fail to undertake an action to redress a wrong suffered by SBC, Ray files a suit on the firm's behalf.
-Refer to Fact Pattern 35-1. Any damages recovered by Ray's suit will go to

• A) Ray.
• B) SBC.
• C) SBC's directors.
• D) the state in which SBC is incorporated.

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Definitions:

Variances

Differences between planned or expected financial performances to the actual financial performance.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to measure actual performance against expected results.

Cost Of Goods Sold Account

An account in the general ledger that tracks the direct costs attributable to the production of the goods sold by a company.

Budgeted Variable Factory Overhead

The standard variable overhead for the actual units produced.