Standard Costs Are Used To

question 94

Multiple Choice

Standard costs are used to:

• A) Allocate support department overhead
• B) Compare to actual costs for evaluation purposes
• C) Compare to expected costs for evaluation purposes
• D) Determine quality levels

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Definitions:

Elastic

Describes how the amount of a good that is demanded or supplied changes in reaction to a price adjustment.

Imperfectly Competitive

Describes markets where individual sellers have some control over the price of their products, unlike in perfect competition.

Price Takers

Firms or individuals who accept the market price as given and have no influence over it due to the competitive nature of the market.

Close Substitutes

Products or services that can be used in place of each other, with minimal differences perceived by the consumer.