A Standard Differs from a Budget Because a Standard

question 58

Multiple Choice

A standard differs from a budget because a standard

• A)is a predetermined cost.
• B)contributes to management planning and control.
• C)is a unit amount.
• D)none of the above; a standard does not differ from a budget.

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Definitions:

Net Profit

The total earnings minus the costs and expenses of a business or investment, indicating the actual profit made.

Investment

The process of distributing funds or resources with the aim of earning income or profit.

Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, real estate, and more, often diversified to reduce risk.

Stocks

Financial instruments representing ownership interests in corporations, providing holders with a claim on part of the corporation's assets and earnings.