Indicate Whether Each of the Following Statements Is True or False

question 56

Short Answer

Indicate whether each of the following statements is true or false.
Standards for direct materials and direct labor should be set by a company's accounting department.______
Standards for direct materials and direct labor should be reevaluated frequently in order to remain relevant and useful.______
Historical information is of little use in establishing standards.______
A standard represents what should be,not what is or was.______
Managers should consider behavioral implications when developing standards.______

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Definitions:

Capital Expenditure

Capital deployed by a corporation to buy, improve, and upkeep tangible assets like land, factories, or machinery.

NPV

Net Present Value, a calculation used to determine the present value of a series of future cash flows minus the initial investment, utilized in capital budgeting to assess the profitability of an investment.

Least-Cost Decision

A decision-making process focused on selecting the option that requires the lowest financial outlay while still achieving the desired result.

Economic Profit-Maximising

The strategy of adjusting the output and pricing of goods or services to achieve the highest possible profit, taking both explicit and implicit costs into account.