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:

Cost Of Goods Sold

An accounting term representing the direct expenses related to the production of goods sold by a company, including material and labor costs.

Inventory

The total amount of goods or materials a business has in stock at any given time, used for production or sales.

Accounting Information

It refers to financial data about a business or individual's economic activities, used to make economic decisions.

Liquidity

The measure of how easily assets can be converted into cash without significant loss in value.