When Standard Costs Are Used in Applying the Cost-Plus Approach

question 59

True/False

When standard costs are used in applying the cost-plus approach to product pricing, the standards should be based upon normal levels of performance.

---

Definitions:

Fewer Formats

The principle or practice of limiting the number of different formats or types used in a document, presentation, or system to simplify design and compatibility.

Sensitivity Level

A measure indicating the degree of protection required for data, based on its potential to cause harm if disclosed or misused.

Message Header

A component of an electronic message that contains metadata such as sender, recipient, and subject.

Subject Line

The title or headline of an email that indicates the message’s content and purpose.