Diskind Corporation Manufactures and Sells a Single Product

question 153

Multiple Choice

Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,700 units, but its actual level of activity was 6,650 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:
Actual results for October:
-The spending variance for direct materials in October would be closest to:

• A)$1,295 F
• B)$2,010 U
• C)$2,010 F
• D)$1,295 U

Understand the components and calculation of the maturity value of a note.

Differentiate between notes receivable and accounts receivable in terms of legal standing and financial reporting.

Understand the concept and accounting treatments for collecting previously written-off accounts.

Recognize the parties involved in a promissory note and understand their roles.

---

Definitions:

Hemorrhage

The escape of blood from a ruptured blood vessel, which can occur internally or externally.

Red Blood Cells

The cells in the blood responsible for carrying oxygen from the lungs to the body's tissues and returning carbon dioxide back to the lungs.

Osmosis

The movement of water molecules through a semipermeable membrane from a region of lower solute concentration to a region of higher solute concentration.

Concentration Gradient

A difference in the concentration of a substance from one point to another, as for example, across a cell membrane.