If Standard Cost Reports Emphasize Meeting Predetermined Standards

question 37

Multiple Choice

If standard cost reports emphasize meeting predetermined standards

• A)there should be non-financial performance measures available to management to supplement the cost reports.
• B)management can control the department properly with standard cost reports.
• C)the budget process should be sufficient to support management's performance.
• D)all members of the team will be able to properly identify critical variance issues.

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Definitions:

Economic Benefits

The advantages or gains received by an individual, company, or society from financial activities or investments.

Past Transactions

Previously completed financial activities or operations that a company has engaged in.

Historical Cost Principle

An accounting principle that states all assets should be recorded at their original purchase cost rather than their current market value.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace, often subject to fluctuations based on supply and demand.