Costs That Reflect What Costs Should Be for the Units

question 93

Short Answer

Costs that reflect what costs should be for the units of product manufactured during the period under normal efficient operating conditions are called------------- costs.

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Definitions:

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or services.

Market Rate

The prevailing price determined by supply and demand in the open market for services or commodities.

Interest

The payments made for the use of money.

Interest Rate

The interest rate is the amount charged by a lender to a borrower for the use of assets expressed as a percentage of the principal, often noted annually.