Standard Costs Are Based Solely on Expected Future Costs and Conditions

question 110

True/False

Standard costs are based solely on expected future costs and conditions.

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Definitions:

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Deregulation

The removal or reduction of government restrictions and regulations in an industry to encourage increased competition.

Reduced Prices

The offering of goods and services at lower rates than originally marked, often to clear inventory or boost sales.

Competition

The economic rivalry among businesses to attract customers, increase sales, and achieve a higher market share.