Which of the Following Conditions Normally Would Not Indicate That

question 63

Multiple Choice

Which of the following conditions normally would not indicate that standard costs should be revised?

• A) The engineering department has revised product specifications in responding to customer suggestions.
• B) The company has signed a new union contract that increases the factory wages on average by $3.50 an hour.
• C) Actual costs differed from standard costs for the preceding week.
• D) The average price of raw materials increased from $4.68 per pound to $4.82 per pound.

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Definitions:

Competing Buyers

Buyers who are interested in purchasing the same product or property, often leading to a competitive situation such as a bidding war.

Different Prices

The variation in cost for goods or services, often resulting from location, demand, quality, or negotiation.

Antitrust Laws

Regulations established to prevent unfair competition, monopolies, and practices that harm consumers or restrict trade.

Cooperatives

Organizations owned and operated by a group of individuals for their mutual benefit, where profits and earnings are distributed among the members.