In Standard Costing

question 81

Multiple Choice

In standard costing,

• A)the standards are developed only for overhead costs.
• B)the standards are developed primarily from past costs.
• C)comparisons with actual costs usually are not performed.
• D)debit and credit entries to inventory accounts are made at standard costs.

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Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of production.

Break-Even Point

The level of production or sales at which total costs equal total revenue, resulting in no net profit or loss.

Fixed Costs

Costs that remain constant in total regardless of changes in the level of production or sales volume.

Unit Selling Price

The amount of money charged for one unit of a product or service, often determining revenue and profitability.