Why Are Standard Cost Systems Adopted

question 88

Multiple Choice

Why are standard cost systems adopted?

• A) to collect additional information
• B) to increase efficiency in a just-in-time environment
• C) to improve planning and control, and to facilitate product costing
• D) to enhance the operational control of firms that emphasize continuous improvement

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Definitions:

Sales Revenue

The earnings accumulated from the sale of products or services during a specific timeframe.

Cash

A company's most liquid asset, representing currency or assets that can be immediately converted into currency.

Sales Tax Payable

A liability account that represents the sales tax collected from customers by a selling entity and owed to the tax authority.

Cash

Money in the form of currency, which includes bills, coins, and money in bank accounts that is available for immediate use.