When Using a Standard Costing System,which of the Following Should

question 30

Multiple Choice

When using a standard costing system,which of the following should be recorded when finished goods are sold?

• A)Debit cost of goods sold for actual cost and credit finished goods for actual cost
• B)Debit cost of goods sold for standard cost and credit finished goods for actual cost
• C)Debit cost of goods sold for standard cost and credit finished goods for standard cost
• D)Debit cost of goods sold for actual cost and credit finished goods for standard cost

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Definitions:

Differentiated Product

A product that is distinguished from similar products in the market by unique characteristics or features, often leading to brand loyalty.

Horizontal Demand Curve

Represents a situation in economics where the demand for a good is extremely sensitive to changes in price, indicative of perfect elasticity.

Oligopolist

A company operating within an oligopoly market structure, where a small number of firms have a large majority of market share and can influence prices and competition.

Non-price Competition

A strategy by businesses to attract customers through methods other than lowering prices, such as quality improvement, marketing, or product differentiation.