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:

Interest Charged

The cost incurred for borrowing money, typically expressed as an annual percentage rate of the principal.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, reflecting the interest payable on any type of debt.

Interest Income

Interest income is the revenue earned from deposit accounts or investments through the lending of funds or the allocation of capital assets expected to generate interest over time.

Self-Esteem

An individual's subjective evaluation of their own worth or abilities.