The General Model for Calculating a Quantity Variance Is

question 71

Multiple Choice

The general model for calculating a quantity variance is:

• A) actual quantity of inputs used x (actual price - standard price).
• B) standard price x (actual quantity of inputs used - standard quantity allowed for output).
• C) (actual quantity of inputs used at actual price) - (standard quantity allowed for output at standard price).
• D) actual price x (actual quantity of inputs used - standard quantity allowed for output).

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Definitions:

Preferred Stock Dividends

Payments made to holders of preferred shares, typically at a fixed rate and before any dividends are paid to common stockholders.

Common Stockholders' Equity

The portion of a company's equity that is attributable to its common shareholders, including retained earnings and paid-in capital.

Days' Sales

Days' Sales, often referred to as Days Sales Outstanding (DSO), measures the average number of days it takes a company to collect payment after a sale has been made.

Inventory

Inventory is the total amount of goods and materials held by a company for the purpose of resale or production.