A Standard Costing System

question 16

Multiple Choice

A standard costing system

• A) is not typically used by management for cost planning and cost control purposes.
• B) is a system in which all costs affecting the three inventory accounts and the Cost of Goods Sold account are stated in terms of actual costs incurred.
• C) depends on actual costs rather than planned costs.
• D) is employed with an existing job order costing or process costing system and is not a full cost accounting system in itself.

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Definitions:

Null Hypothesis

A hypothesis that suggests there is no statistical significance between the specified sets of observations, usually representing a statement of no effect or no difference.

Alternative Hypothesis

The hypothesis in a statistical test that proposes a difference or effect, opposing the null hypothesis, and is considered true if the null hypothesis is rejected.

Alternative Hypothesis

A statement that proposes a new theory or relationship, typically suggesting that there is a statistically significant effect or association between variables.

P-value

The likelihood of achieving outcomes as significant as, or more so than what was actually observed in the study, assuming the null hypothesis is true.