Public Recognition Includes

question 47

Multiple Choice

Public recognition includes

• A)power.
• B)proximity.
• C)a good story.
• D)human interest.

Recognize the impact of volume changes on unit fixed and variable costs.

Understand the accounting treatment for insignificant cost variances.

Understand the process and significance of recording labor costs in financial statements.

Calculate and interpret direct materials cost variances, including price and quantity variances.

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Definitions:

Minimum Required Rate

Often refers to the minimum rate of return that an investment must offer to be considered viable or the minimum acceptable compensation for delay or risk.

Revenue Variance

The difference between how much the revenue should have been, given the actual level of activity, and the actual revenue for the period. A favorable (unfavorable) revenue variance occurs because the revenue is higher (lower) than expected, given the actual level of activity for the period.

Activity Measure

An allocation base in an activity-based costing system; ideally, a measure of whatever causes the costs in an activity cost pool.

Average Actual Selling Price

The mean price at which goods or services have been sold, calculated over a specific period or volume of sales.