Jose Exports Inc

question 11

Multiple Choice

Jose Exports Inc.reported net income of $150,000 for 2013,but its cash balance decreased $40,000.Which financial statement should Jose Exports' management refer to for an explanation of this situation?

• A)Balance Sheet
• B)Income Statement
• C)Statement of Retained Earnings
• D)Statement of Cash Flows

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Definitions:

Direct Labor Rate Variance

This refers to the difference between the actual cost of labor and the expected (or standard) cost of labor used in producing goods.

Direct Labor

The cost of wages for workers who are directly involved in the production of goods or the delivery of services.

Variable Overhead Efficiency Variance

The difference between the standard cost of variable overheads allocated for actual production and the actual variable overheads incurred, used to assess efficiency in controlling variable overhead costs.

Fixed Overhead Spending Variance

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