When an Appropriately Established and Effective Standard Cost System Is

question 23

Multiple Choice

When an appropriately established and effective standard cost system is used to value inventory:

• A) cumulative variances are deferred.
• B) a significant unfavorable net variance may be reported as an expense of the current period.
• C) a significant favorable net variance may be reported as an expense of the current period.
• D)the explanatory notes to the financial statements will explain the disposition of the net variance.

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Definitions:

Social Loafing

Social loafing is the tendency of individuals to exert less effort when working in a group compared to when working individually, due to perceived diffusion of personal responsibility.

Altruistic Punishment

A behavior where individuals punish others for breaking societal norms, even at a cost to themselves, to enforce cooperative behavior.

Cheat The System

Engaging in dishonest or unethical practices to gain an advantage or bypass rules.

Accountability

The obligation or willingness to accept responsibility for one's actions and decisions.