Which Statement Applies to Ideal Standards

question 127

Multiple Choice

Which statement applies to ideal standards?

• A)Allow for machine breakdowns, slack, or lack of momentary skill.
• B)Demand minimum efficiency.
• C)Can be achieved only if everything operates perfectly.
• D)Can be achieved under efficient operations.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material costs and direct labor.

Gross Profit

The income a business earns after subtracting the expenses related to the production and sale of its goods, or the expenses incurred in delivering its services.

Net Income

The total profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Supplies Used

The cost of supplies consumed during a specific period, often recorded as an expense on the income statement.