Figure 10-2Highland Company's Standard Cost Is $250,000 $\pm$ 10% Its Actual Costs for Six Months Are

question 4

Multiple Choice

Figure 10-2Highland Company's standard cost is $250,000. The allowable deviation is $\pm$ 10%. Its actual costs for six months are

-Refer to Figure 10-2. The variance that is higher than the upper control limit is

• A) $220,000
• B) $280,000
• C) $265,000
• D) $235,000

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Definitions:

Special Journals

Accounting journals designed for recording a specific type of transaction consistently, such as sales or purchases, for efficient processing.

General Journal

The primary accounting record where all financial transactions of a business are initially recorded before summarizing.

Cost Effectiveness

An assessment of the financial viability of a project, product, or measure based on the costs incurred versus the benefits achieved.

Flexibility

The capacity to adapt to changing conditions or circumstances in a business or operational context.