The Method not Employed in the Establishment of Standard Costs

question 30

Multiple Choice

The method not employed in the establishment of standard costs is:

• A)Analysis of historical performance data
• B)Time and motion studies
• C)Management judgement concerning future operating conditions
• D)Discounted cash flow analysis

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Definitions:

Adaptive

The characteristic of being able to adjust or change in response to environmental conditions, ensuring survival and reproduction.

Costs

The expenditure or amount of resources (financial, time, material) required to conduct activities or achieve certain outcomes.

Benefits

Advantages or positive outcomes that result from a specific action, situation, or policy.

Ultimate Causes

Explanatory factors in biology that address why organisms have the traits they do, often looking at historical reasons and evolutionary processes.