Establishing Standard Cost Amounts

question 4

Essay

Establishing standard cost amounts
Explain why the determination of standard cost amounts should not be the sole responsibility of a company's cost accountant.

Recognize various psychogenic needs identified by Henry Murray and their influence on consumer behavior.

Comprehend how consumer behavior is influenced by the need for affiliation and power.

Understand the initial steps and strategies in planning and adapting presentations to meet audience needs.

Recognize the negative impact of verbal fillers and the importance of clear articulation in presentations.

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Definitions:

Cash Inflows

Money coming into a business from various sources, including sales, financing, and investments.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Total Cost Approach

The total cost approach considers all possible costs associated with a decision or project, from production to shipping, to evaluate profitability thoroughly.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.