Which of the Following Would Be Considered an Actual Cost

question 45

Multiple Choice

Which of the following would be considered an actual cost of a current period?

• A) The $25 of materials in a manufactured chair that is ready to be shipped to the customer
• B) The $22 of direct material cost per unit assumed in the actual budget of a manufacturer of chairs
• C) The expected cost of materials for a chair as a result of engineering specifications
• D) The average of historical material cost data for a chair manufactured in several past accounting periods

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Definitions:

Cultural Context

The various social, religious, economic, and cultural conditions that influence the life of an individual or community.

Rational Behavior

Decision-making or action taken based on logical, reasoned considerations, often aiming for the most optimal outcome.

Sex-Stereotypical Encouragement

The act of promoting or endorsing behaviors, activities, or roles that are traditionally associated with a person's gender.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.