Standard Costing

question 31

Multiple Choice

Standard costing

• A)establishes price and quantity standards for inputs.
• B)provides journal entry support.
• C)is not used in unit costing.
• D)none of these.

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Definitions:

Compounded Semiannually

Compounded Semiannually refers to the process of applying interest to both the initial principal and accumulated interest of a deposit or loan on a twice-yearly basis.

Present Value

The today's price of a future amount of money or streams of cash inflow, under a specified yield rate.

Compounded Monthly

Refers to the process of calculating interest where the accumulated interest is added to the principal sum at the end of each month, leading to "interest on interest."

Present Value

The contemporary valuation of future monetary sums or cash flow streams, determined by an established rate of profit.