Standard Costs Can Be Used by Management to Assess the Reasonableness

question 103

True/False

Standard costs can be used by management to assess the reasonableness of actual costs incurred.

---

Definitions:

External Factor

An influence originating outside an individual or system that significantly affects outcomes or decisions within it.

Kelley's Covariation Model

A theory in social psychology that explains how people attribute cause and effect based on the patterns of variability, consistency, and consensus.

Consistency

The state of being coherent and uniform in thoughts, beliefs, or actions over time.

External Factor

An external factor refers to influences from the external environment that impact individuals or organizations, often beyond their control.