A Deviation from Standard That Occurs Because of an Incorrect

question 63

Multiple Choice

A deviation from standard that occurs because of an incorrect number resulting from improper or inaccurate accounting systems or procedures is an example of a(n) :

• A) Random error.
• B) Prediction error.
• C) Implementation error.
• D) Modeling error.
• E) Accounting error.

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Definitions:

Differential Cost

The difference in total cost between two alternatives, highlighting how costs change under different operational decisions.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.

Product Cost

The total expenditure incurred to manufacture a product or offer a service, including materials, labor, and overhead costs.

Conversion Cost

The total cost of converting raw materials into finished products, typically including labor and overhead expenses.