Provide an Appropriate Response

question 90

Multiple Choice

Provide an appropriate response.
-In the following summary of a statistical report, tell what crucial information is missing and what more you would want To know before you acted on the report.
A popular newspaper headline reported that "Idaho Feels Carb Crisis as Potatoes Lose Appeal," and the Accompanying graph showed that while 150 million potatoes were exported from Idaho in 1990, only 75 million potatoes Were exported from Idaho in 2007.

• A)The headline makes a reference to the popular anti-carb diet, but the statistics provide no information about the number of people on the diet during the given years.
• B)The article suggests that the state of Idaho is having a crisis, so some change is having a dramatic effect, but no information is given about any such change.

Acknowledge the limitations of relying exclusively on past cost data for setting standards.

Differentiate between ideal and currently attainable standards.

Recognize the comprehensive scope of standards beyond just direct labor and materials.

Understand the concept and purpose of standard costs in business operations.

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Definitions:

Cost Reduction

Refers to strategies and actions a company undertakes to decrease its total expenses and improve profitability.

Incremental Sales

The additional sales generated from a specific marketing campaign, promotional offer, or product launch, distinguishing these sales from the base level of sales.

Required Return

The minimum rate of return an investor expects to receive from an investment, considering the risk involved.