Which of the Following Do Not Serve as Additional External-Governance

question 39

Multiple Choice

Which of the following do not serve as additional external-governance mechanisms?

• A) auditors
• B) government regulators
• C) board of directors
• D) industry analysts

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Definitions:

Standard Quantity

The amount of materials or resources that should be used for the production of a good or service under normal conditions.

Cost Variance

The difference between the actual cost incurred and the expected cost, based on standard costing or budgeted amounts.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of units of a product, which is used for budgetary and cost control purposes.

Favorable Variance

Occurs when actual performance is better than expected, leading to lower costs or higher revenues than planned.