Standard Costs

question 10

Multiple Choice

Standard costs

• A)may show past cost experience.
• B)help establish expected future costs.
• C)are the budgeted costs per unit in the present.
• D)all of these.

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Preferred Shares

A class of stock that provides shareholders with a priority claim on assets and earnings before common stockholders, usually including fixed dividend payments.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Par Value

The nominal or face value of a bond or stock as stated by the issuing company, not necessarily reflecting its market value.