Kyle, Inc Has Collected the Following Data on One of Its

question 1

Multiple Choice

Kyle, Inc. has collected the following data on one of its products. The direct materials quantity variance is:

• A) $30,000 favorable.
• B) $13,750 unfavorable.
• C) $16,250 favorable.
• D) $30,000 unfavorable.
• E) $13,750 favorable.

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Definitions:

Net Income

A company's overall earnings following the deduction of all expenses and taxes from its gross income.

Average Collection Period

The average number of days it takes for a company to collect receivables from its customers, indicating the efficiency of its credit policies.

Discount Period

The time frame in which a buyer can pay less than the full amount due on an invoice if payment is made promptly, incentivizing early payment.

Credit Term

The agreement between a buyer and a seller that defines the amount of time a buyer has to pay for goods.