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:

Assessment Instruments

Tools and methods used to evaluate or measure specific traits, abilities, or knowledge in individuals.

Observation

The active acquisition of information from a primary source using the senses or instruments that extend the senses.

Rank Order

A method of arranging data or items in a sequence based on their value or magnitude, from highest to lowest or vice versa.

Rating Scales

Tools used to quantify or categorize individuals' responses, attitudes, behaviors, or qualities, typically by assigning numbers or labels to different levels of an attribute or dimension.