Normally, Standard Costs Should Be Revised When Labor Rates Change

question 87

True/False

Normally, standard costs should be revised when labor rates change to incorporate new union contracts.

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Definitions:

Dividend Revenue

Income earned from owning shares of a company, paid out from the company's earnings.

Cash Dividend

A cash payment of earnings made by a company to its stockholders.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks.

Available-for-Sale Debt Securities

Financial assets acquired primarily for selling in the short term but may be held for a longer period, reported at fair market value on balance sheets.