Which of the Following Is a Reason Companies Use Standard

question 4

Multiple Choice

Which of the following is a reason companies use standard costs?

• A) to enhance customer loyalty
• B) to ensure the accuracy of the financial records
• C) to share best practices with other companies
• D) to identify performance standards

---

Definitions:

Internal Controls

Systems and procedures implemented by a company to ensure the integrity of financial and accounting information.

Information Processing

The collection, manipulation, storage, retrieval, and classification of information.

Revenue Journal

An accounting ledger dedicated to recording sales transactions that generate revenue for a business.

Account

An accounting form that is used to record the increases and decreases in each financial statement item.