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Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July. Its beginning and ending work-in-process and finished goods inventories were as follows:

-The differences between standard and actual financial amounts of inputs are referred to as:
A)standard deviations
B)variances
C)appraisals
D)exceptions

Question

Use the following to answer questions 
Dodd Corporation used $90,000 of direct material, $112,000 of direct labor, and applied $104,000 of manufacturing overhead during July. Its beginning and ending work-in-process and finished goods inventories were as follows:
 
-The differences between standard and actual financial amounts of inputs are referred to as:
A)standard deviations 
B)variances 
C)appraisals 
D)exceptions

Quizplus · Accepted Answer

The differences between standard and actual financial amounts of inputs are commonly referred to as variances in accounting. Therefore, the best choice is B, variances. A refers to a statistical concept and is not applicable in this scenario. C and D are not used in accounting to describe differences between standard and actual financial amounts.

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