Which of the Following Is True

question 84

Multiple Choice

Which of the following is true?

• A)Standard costs cannot be incorporated into the accounts in the general ledger.
• B)An advantage of standard costs is that they simplify costing of inventories and reduce clerical costs.
• C)Setting standard costs is relatively simple because it is done entirely by accountants.
• D)Standard cost cards are the subsidiary ledger for the Work in Process account in a standard cost system.

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Definitions:

Full Goodwill Method

An accounting approach where the total fair value of goodwill is recorded in the books, even if the parent company does not own 100% of a subsidiary.

Non-controlling Interest

The portion of equity ownership in a subsidiary not held by the parent company, reflecting minority shareholders' stake in the subsidiary's net assets.

Fair Value

An estimate of the price at which an asset or liability could be exchanged between willing parties in an arm's length transaction.

Share Capital

Fund raised by a company through the issuance of shares to investors, representing the equity stake of shareholders in the company.