The True Statement Is

question 40

Multiple Choice

The true statement is:

• A)The limitation of actual costs is that they represent what happened not necessarily what should have happened
• B)Standard costs are the costs necessary to produce an average or standard product
• C)Standard costs can serve as benchmarks against which budgeted performance is measured
• D)Standard costs can only be used for analytical purposes and can never be incorporated into the formal accounting system.

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Definitions:

Semi-strong Form

A concept in efficient market hypothesis proposing that all publicly available information is fully reflected in stock prices.

Variance

A statistical measure that represents the spread or dispersion of a set of data points from their mean.

Average Squared Difference

A statistical measure used in variance calculations, representing the average of the squared differences from the mean.

Actual Return

The real profit or loss achieved on an investment over a particular time period, often expressed as a percentage.