All of the Following Are Recognized as Reasons for Accumulating

question 27

Multiple Choice

All of the following are recognized as reasons for accumulating earnings except

• A) product liability loss reserves.
• B) redemption of stock of deceased shareholder.
• C) working capital needs.
• D) All of the above are recognized reasons for accumulating earnings.

Acknowledge the limitations of relying exclusively on past cost data for setting standards.

Differentiate between ideal and currently attainable standards.

Recognize the comprehensive scope of standards beyond just direct labor and materials.

Understand the concept and purpose of standard costs in business operations.