Errors and irregularities are defined as intentional distortions of facts.

	Errors	Irregularities
a.	Yes	Yes
b.	Yes	No
c.	No	Yes
d.	No	No

a) c

b) b

c) d

d) a

2)Rondelli Manufacturing Company employs a standard cost system. A planned volume variance in the first quarter of 2011, which is expected to be absorbed by the end of the fiscal year, ordinarily should

a) be deferred at the end of the first quarter if it is favorable; unfavorable variances are to be recognized in the period incurred.

b) be deferred at the end of the first quarter if it is unfavorable; favorable variances are to be recognized in the period incurred.

c) never be deferred beyond the quarter in which it occurs.

d) be deferred at the end of the first quarter, regardless of whether it is favorable or unfavorable.

thank you for your help