The Building Blocks of Financial Statement Analysis Do Not Include

question 138

Multiple Choice

The building blocks of financial statement analysis do not include:

• A)External analyst services.
• B)Solvency.
• C)Profitability.
• D)Market prospects.
• E)Liquidity and efficiency.

---

Definitions:

Direct Labour Hours

Direct Labour Hours represent the amount of time spent by workers directly involved in manufacturing a product or providing a service.

Variable Overhead

Indirect operating costs that change in proportion to the level of production or business activity.

Total Variable Overhead Variance

The difference between the actual variable overhead incurred and the standard variable overhead allocated for the output achieved.

Standard Costing System

An accounting method that applies estimated costs to product costs for the purposes of budgeting and inventory valuation.