Once Standard Costs for Products or Services Have Been Developed

question 57

Multiple Choice

Once standard costs for products or services have been developed:

• A)they must be updated monthly to be useful.
• B)they can be used for more than planning and control purposes.
• C)they need not be revised unless the product or service is modified.
• D)performance reports must be issued if the standards are to be useful.

---

Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, typically used in its financial reporting.

Historical Cost

The original monetary value of an asset or investment at the time of its purchase, not adjusted for inflation or other factors over time.

Current Rate Method

In accounting, a method for converting the financial statements of a foreign subsidiary to the parent company's currency by applying the current exchange rate to all assets, liabilities, equity, income, and expenses.

Exposure

The extent to which a company is vulnerable to risks from external factors such as currency fluctuations, market volatility, or regulatory changes.