Which of the Following Is a Reason Companies Use Standard

question 139

Multiple Choice

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

• A) to enhance customer loyalty
• B) to set sales prices of products and services
• C) to share best practices with other companies
• D) to ensure the accuracy of the financial records

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Definitions:

Right Choice

A decision or selection that is considered optimal or most fitting given the circumstances, often used in the context of consumer decisions or ethical judgments.

Gray Market Activity

Trading of goods through distribution channels that, while legal, are unofficial, unauthorized, or unintended by the original manufacturer.

Global Pricing

The strategy of setting prices for products or services on a global scale, taking into account currency differences, economic conditions, and local market demand.

Market Activity

The volume of transactions or trades and the behavior of participants in financial markets, reflecting the degree of vibrancy or fluctuations.