Accounting Information Systems Are Designed To

question 40

Multiple Choice

Accounting information systems are designed to:

• A) Minimize cost.
• B) Maximize use of information technology.
• C) Report information to decision makers.
• D) Eliminate the need for paper documents.

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Definitions:

Total Variable Overhead Variance

The difference between the actual variable overhead costs incurred and the expected (or budgeted) variable overhead costs.

Material Quantity Variance

A financial measurement that calculates the difference between the expected amount of materials and the actual amount used, affecting production costs and efficiency.

Material Price Variance

The difference between the actual cost of materials used to produce a product and the standard or expected cost.

Direct Material Variances

The difference between the actual cost of direct materials used in production and the standard cost, indicating efficiency in using materials.