A Business Performing a Physical Count of Inventory on Hand

question 29

Multiple Choice

A business performing a physical count of inventory on hand is known as a:

• A) count.
• B) stocklist.
• C) stocktake.
• D) stockvalue.

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Definitions:

Line-item Budgets

Budgets that list individual sources of income and expenses, providing a detailed financial overview for monitoring and planning.

Flexible Budgeting

An approach in budgeting that allows for adjusting budget allocations based on varying levels of activity or output.

Unfavorable Variance

A situation where actual costs exceed the standard or budgeted costs, often indicating inefficiencies or increased expenses.

Favorable Variance

A financial term indicating that actual costs were lower or revenues were higher than planned.