Standard Costs of Production Are the Basis for Operating Budgets

question 1

Multiple Choice

Standard costs of production are the basis for operating budgets, product prices, and control of production costs. As these areas develop, __________________ will become part of the ____________ -information system. Standard costs to create the time and place utilities will be calculable.

• A) operations and traffic budgeting / technology
• B) operations and distribution cost accounting / technology
• C) purchasing and distribution cost accounting / accounting technology
• D) purchasing and distribution cost accounting / technology
• E) operations and warehouse budgeting / accounting

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Definitions:

Development Expenditures

Costs incurred in the design, implementation, and testing of new products or processes, which may be capitalized or expensed, depending on their nature and future benefit.

Straight-Line Method

A technique for calculating depreciation or amortization that uniformly distributes the cost of an asset across its lifespan.

Depreciation Expense

The allocation of the cost of a tangible fixed asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Installation Costs

Expenses related to setting up or installing equipment, machinery, or other assets for operational use.