Standards Are Important in an Industry Because

question 43

Multiple Choice

Standards are important in an industry because:

• A)They allow interoperability and industry growth,and are linked with network externalities
• B)They are established by the dominant player in the industry
• C)They are imposed by the government and have the force of law behind them
• D)High-tech industries are the only industries that cannot effectively function without standards

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Definitions:

Weighted-Average Method

An inventory valuation technique that calculates the cost of inventory by taking the average cost of all similar items present in the inventory.

First-In, First-Out Method

An inventory valuation method whereby the oldest inventory items are recorded as sold first, thus the cost of items purchased first is charged against revenue earlier.

Equivalent Units

A concept used in cost accounting to convert units of production into a common measure.

First-In, First-Out Method

An inventory valuation method where the oldest inventory items are recorded as sold first, leaving the newest inventory in stock.