Which of the Following BEST Describes Standard Costs

question 163

Multiple Choice

Which of the following BEST describes standard costs?

• A) Costs used as a budget for a single unit of product
• B) Costs incurred to produce the standard model of a product
• C) Costs based on the average of current market values
• D) Costs used to compare with competitors' prices

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Definitions:

Monthly Compounded

Calculation of interest on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan, compounded every month.

RRSP

Registered Retirement Savings Plan, a Canadian account for holding savings and investment assets, with tax benefits.

Canadian Equity

Investments in stocks or shares of Canadian companies, representing ownership and a claim on part of the company's assets and earnings.

Annually Compounded

An interest rate compound method where the calculation of interest is done once per year.