Standard Costs Are a Useful Management Tool That Can Be

question 75

True/False

Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they can be incorporated in the accounts.

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Definitions:

Drawer

The party in a transaction who writes and signs a check or draft instructing a drawee, such as a bank, to pay a specified sum of money to the payee.

Drawee

The person or entity upon whom a check, draft, or bill of exchange is drawn and who is expected to pay it.

Payee

The person or entity to whom a payment is to be made or who receives the payment.

Negotiable Instruments

Financial documents, like checks or promissory notes, that guarantee payment of a specific amount of money to the bearer under certain conditions.