Standard Costs

question 66

Multiple Choice

Standard costs

• A)are estimates of costs attainable only under the most ideal conditions.
• B)are difficult to use with a process costing system.
• C)can,if properly used,help motivate employees.
• D)require that significant unfavorable variances be investigated,but do not require that significant favorable variances be investigated.

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Definitions:

Product Misuse

The incorrect, inappropriate, or unintended use of a product, which can lead to injury or failure to meet the user's needs.

Unforeseeable Way

A scenario or event that could not be predicted or anticipated, often used in legal contexts to describe accidents or events beyond control.

Contributory Negligence

This is a legal defense where the plaintiff is partially at fault for the injury or damage they have suffered, which can reduce or eliminate their entitlement to damages.

Negligent

Failing to take proper care in doing something, leading to damage or harm to another.