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:

Freight-in

Costs associated with transporting inventory to the company, which are typically added to the cost of inventory.

Post-Closing Trial Balance

The final step in the accounting cycle that lists only permanent accounts in the ledger and their balances after adjusting and closing entries have been posted.

Income Statement

A financial report detailing a company's revenues, expenses, and profits or losses over a specific period, demonstrating financial performance.

General Journal

A primary accounting record where financial transactions are entered in chronological order, before posting to accounts in the general ledger.