A Standard Cost System Helps Management Set Performance Standards

question 138

True/False

A standard cost system helps management set performance standards.

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation in which an asset's book value is reduced by twice the rate of straight-line depreciation.

Straight-Line Rate

The Straight-Line Rate refers to a method of calculating depreciation or amortization by evenly allocating the cost of an asset minus its salvage value over its useful life.

Depreciation Method

A systematic approach to allocating the cost of a tangible asset over its useful life.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including balance sheet, income statement, and cash flow statement.