If Standard Costs Are Incorporated into the Accounting System

question 10

Multiple Choice

If standard costs are incorporated into the accounting system

• A) it may simplify the costing of inventories and reduce clerical costs.
• B) it can eliminate the need for the budgeting process.
• C) the accounting system will produce information which is less relevant than the historical cost accounting system.
• D) approval of the shareholders is required.

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Definitions:

Sensation Seeker

An individual who is characterized by the pursuit of experiences and feelings that are varied, novel, complex, and intense.

Need For Achievement

A psychological trait that drives individuals to pursue and attain challenging goals, often with a significant emphasis on excellence and overcoming obstacles.

Homeostasis

The dynamic process through which biological systems maintain stability and optimal internal conditions despite external changes.

Drives

Basic, innate urges that motivate behavior, such as hunger or thirst.