We Use the Term Capitalize to Describe Recording an Expenditure

question 72

True/False

We use the term capitalize to describe recording an expenditure as an expense.We use the term capitalize to describe recording an expenditure as an asset.

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Definitions:

Price Variances

Differences between the actual cost of a product or service and its expected cost, often analyzed in budgeting and cost management.

Quantity Variances

Differences between actual quantities of inputs used in production and the standard quantities expected to be used.

Standards

Established benchmarks or norms for measuring quality, performance, or compliance within an industry or organization.

Variable Factory Overhead Controllable Variance

The difference between the actually incurred variable overhead and what was expected, based on the standard cost.