A Standard Cost Is a Unit Cost That _____

question 54

Multiple Choice

A standard cost is a unit cost that _____.

• A)should never be revised
• B)is the average cost for the industry
• C)the company attained in the most recently completed period
• D)should be attained

Recognize the role of homemade leverage and its implications on investors' portfolio decisions.

Understand the factors influencing the selection of a production facility location.

Grasp the use of technology in manufacturing, including computer-aided design (CAD) and computer-integrated manufacturing (CIM).

Recognize the importance of labor supply in production facility location decisions.

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Definitions:

Unrealized Increase

The increase in value of an asset that has not yet been sold or cashed in, thus not yet resulting in actual income.

Recognition

In accounting, recognition refers to the process of including an item in the financial statements of an entity, acknowledging it as an asset, liability, revenue, or expense.

Unrealized Holding

Refers to the increase or decrease in the value of an investment that has not yet been sold by the holder.

Realized Gains

Profits made from selling an asset at a higher price than its purchase cost, which has been actually earned and can be reported in financial statements.