R&D Costs Are Used for Which Purpose of Cost Allocation

question 117

Multiple Choice

R&D costs are used for which purpose of cost allocation?

• A)to provide information for economic decisions
• B)to report to external parties when using generally accepted accounting principles
• C)to calculate costs of a government contract
• D)All of these answers are correct.

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Definitions:

Rigorous

Characterized by strict precision, accuracy, and careful attention to detail.

Materials Quantity Variance

The difference between the actual amount of materials used in production and the standard amount expected to be used, multiplied by the standard cost per unit of material.

Standard Direct Materials

The pre-determined amount and cost of raw materials used in the production of a product.

Variance

The difference between planned (budgeted) and actual figures in financial and operational contexts, identifying discrepancies.