In the Situation Set Out in Either of the Previous

question 3

Multiple Choice

In the situation set out in either of the previous questions,the dissent in the Prestridge case would most likely hold Silverado liable for

• A)all checks.
• B)checks that were cashed less than thirty days after the statement.
• C)checks that were cashed more than thirty days after the statement.
• D)no checks.

---

Definitions:

Lower Quality

Lower quality typically refers to products or assets that do not meet certain standards or expectations in terms of performance, durability, or reliability.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

SQ × AP

The standard quantity times actual price formula, used in cost accounting to calculate the variance between the actual cost and the standard cost of raw materials.

Direct Materials Price Variance

The difference between the actual cost and the standard cost of direct materials used in production, indicating how effectively the materials budget is being adhered to.