Which of the Following Conditions Normally Would Not Indicate That

question 63

Multiple Choice

Which of the following conditions normally would not indicate that standard costs should be revised?

• A) The engineering department has revised product specifications in responding to customer suggestions.
• B) The company has signed a new union contract that increases the factory wages on average by $3.50 an hour.
• C) Actual costs differed from standard costs for the preceding week.
• D) The average price of raw materials increased from $4.68 per pound to $4.82 per pound.

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Definitions:

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Discounts

A deduction from the usual cost of something, often provided as a promotion or to certain groups like students or veterans.

Taxable

Pertaining to income or transactions that are subject to tax by the relevant tax authority.

Municipal Bonds

Municipal Bonds are debt securities issued by municipalities to finance public projects, often offering tax-exempt interest payments to the investors.