All of the Following Are Features of a Standard Cost

question 88

Multiple Choice

All of the following are features of a standard cost system except:

• A)Standards should not be adjusted.
• B)Standards provide incentives for workers to keep costs in line.
• C)Comparisons between actual and standard are more effective than comparisons between actual costs of the current period and those of the prior period.
• D)A standard cost system focuses management attention on materials prices and usages.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, resulting in a net income or loss.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or undervalued.

Intermediate Calculations

Calculations performed as steps towards the final result in a complex problem-solving or accounting process.

Market Price

Market price is the current price at which an asset or service can be bought or sold in the open market.