A Drawback of Standard Costing Is That Standard Costs Often

question 10

True/False

A drawback of standard costing is that standard costs often fluctuate erratically.

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Definitions:

Franchise

A licensed privilege to operate a business under a larger company's brand and operational model, often including a specific geographic area.

Franchise Rule

A regulation designed to govern the sale of franchises, requiring franchisors to provide potential franchisees with disclosure documents containing vital details about the franchise.

Federal Trade Commission

A U.S. government agency aimed at protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

Franchisor

A person or company that grants the license to a third party for the conducting of a business under the franchisor's marks, name, and business model.