Standard Costs Should Be Based On

question 114

Multiple Choice

Standard costs should be based on:

• A) perfect performance.
• B) an average of past costs.
• C) most likely level of performance.
• D) reasonably attainable levels of efficiency.

---

Definitions:

Disposal Of A Segment

The process of eliminating a division or part of a business, which may involve selling, closing, or spinning off.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, providing insight into business operations and profitability.

Accounting Principle

Fundamental guidelines or rules that govern the process of accounting and financial reporting, ensuring consistency and comparability of financial data.

Extraordinary Items

Events or transactions that are both unusual in nature and infrequent in occurrence, significantly affecting a company's financial position and reported separately in financial statements to provide clarity.