What Is the Primary Purpose of a Uniform System of Accounts

question 23

Multiple Choice

What is the primary purpose of a uniform system of accounts?

• A) To record business revenue
• B) To minimize business expenses
• C) To ensure a business pays all of its applicable taxes
• D) To present financial data usefully and consistently

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Definitions:

Standard Costs

Predetermined cost estimates used to measure the cost performance of an operation, allowing for budgeting and variance analysis against actual costs.

Standard Price

A predetermined cost of a resource or product, used for budgeting and cost control purposes.

Standard Quantity

A predetermined amount of input that should be used in producing a unit of output.

Standard Costs

Predetermined costs for manufacturing a product or service, used as a benchmark to measure the actual costs of production.