The Ease with Which a Security Can Be Sold and Converted

question 65

Multiple Choice

The ease with which a security can be sold and converted into cash is called:

• A) convertibility.
• B) book value.
• C) marketability.
• D) none of the above.

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Definitions:

Unfavorable

A term used in budgeting and variance analysis indicating costs exceeded the budget or revenue fell short.

Variable Overhead Efficiency Variance

The difference between the expected variable overhead costs based on standard costing and the actual variable overhead incurred, attributable to efficiency.

Materials Price Variance

The difference between the actual cost of raw materials and the standard cost expected to be paid, reflecting changes in price.

Raw Materials Price Variance

A measure of the difference between the actual cost of raw materials and the expected (standard) cost.