Companies May Determine Standards by Evaluating Their Capacity to Enable

question 69

True/False

Companies may determine standards by evaluating their capacity to enable goal achievement, by listening to customers, by observing competitors, or by benchmarking other companies.

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Definitions:

Allowance for Repairs

A reserve of funds set aside by a company to cover anticipated repair costs for its assets.

Deferred Credit

Liabilities or income that have been recognized but not yet earned, and therefore, postponed to a future accounting period.

Contra Account

An account that is used to reduce the value of a related account on a financial statement and presents the net balance of both accounts.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use.