Standard Costs Are the Amount That Should Be Spent to Produce

question 66

True/False

Standard costs are the amount that should be spent to produce a product or service.

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Definitions:

Adam Smith

A Scottish economist and philosopher, considered the father of modern economics, best known for his work "The Wealth of Nations."

Efficient

The characteristic of maximizing output or effectiveness with the least waste of time, resources, or effort.

Opportunities

Chances or circumstances that allow for growth, development, or success in various areas such as business, personal life, or education.

Marginally Optimal

Describes an economic decision where the marginal benefit from the last unit of good or service consumed or produced is equal to its marginal cost.