Question

for a. True b. False me that actual prodact costs are reconded in order to be the year are then reponed on an internal income staemcet f15. The direct labor time variance measures the the efficiency of the direct labor force. a. True b. False ometimes published in reports to stockholders, as the information is 17. A favorable cost variance occurs when the actual cost is less than the budgeted cost at occurs a. True b. False 18. The statement of cash fows is an optional financial statement. a. True b. False 0,cash paid for dividends reported in the financing section would show ($90,000). a. True year, if dividends were declared for the amount of $90,000 and cash dividends were paid in b. False 20. Net income for the year was $29,500. Accounts receivable increased $2,500, and accounts payabl There were no other i cs rent assets and liabilities. Under the indirect method, the eh operations is $32,400 a. True b. False Page 5 of 9

Answer 1

14)The statement is True.

At the time of actual cost ,companies open a variance accounts so as to evaluate variance between actual and budgeted cost.

15)The statement is True

Labor time variance focuses on variance between actual hours and standard hours for actual output at standard cost .The less the actual hours ,more efficient the workers are.

16)The statement is False

Variance analysis are done for management purpose to evaluate the actual and budgeted cost so they are not published to stockholders.

17)The statement is true.

Favorable variance =Actual cost is less than standard cost

18)The statement is false

Cash flow statement is a part of financial statement to be issued to stockholders(not optional)

19)The statement is false

dividend paid in financing section= 85000 (outflow of cash)

20)The image is cutted.