Which of the Following Statements Regarding Allowances for Spoilage And/or

question 73

Multiple Choice

Which of the following statements regarding allowances for spoilage and/or inefficiency is not correct?

• A) When allowances are not included within the standards, any inefficiencies are highlighted as unfavourable variances.
• B) When allowances are not included within the standards, any inefficiencies are highlighted as favourable variances.
• C) Firms would never set standards that included an allowance for spoilage.
• D) When allowances are not included within the standards, any inefficiencies are highlighted as favourable variances AND firms would never set standards that included an allowance for spoilage.

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Definitions:

Full Endorsement

A signature on the back of a negotiable instrument, such as a check, that specifies the person to whom the instrument is to be paid, transferring ownership.

Blank Endorsement

Blank Endorsement is a signature on a financial instrument, such as a check, without designating a payee, making it payable to the bearer.

Drawer

In accounting, the entity (person or organization) that issues or writes a bill of exchange, check, or draft, instructing another entity to pay.

Drawee

Bank that drawer has an account with.