If Standard Costs Are Incorporated into the Accounting System

question 10

Multiple Choice

If standard costs are incorporated into the accounting system

• A) it may simplify the costing of inventories and reduce clerical costs.
• B) it can eliminate the need for the budgeting process.
• C) the accounting system will produce information which is less relevant than the historical cost accounting system.
• D) approval of the shareholders is required.

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Definitions:

Lobbying Activities

Efforts to influence government decision-makers by individuals or groups, often to benefit private, specific interests.

Ally

A state or entity that cooperates with another for a mutual benefit, particularly in political or military contexts.

Relative Costs

The comparison of the cost of one item or activity to another, often considering factors like time, resources, and alternatives.

Exporting

The act of sending goods or services from one country to another country for sale or trade.