Standard Costs Are Divided into Which of the Following Components

question 104

Multiple Choice

Standard costs are divided into which of the following components?

• A) Variance Standard and Quantity Standard
• B) Materials Standard and Labor Standard
• C) Quality Standard and Quantity Standard
• D) Price Standard and Quantity Standard

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which need to be settled over time.

Assets

Economic resources owned or controlled by an entity, expected to produce value or benefit in the future.

Cycle Inventory

Inventory that is carried as a result of the production or purchase process, determined by the frequency of orders and the quantity of goods ordered each time.

Demand Variability

The extent to which demand can fluctuate over a period of time, impacting inventory management and planning processes.