An Important Advantage of a Standard Cost System Is That

question 107

Multiple Choice

An important advantage of a standard cost system is that standard costs:

• A)Cause financial statements to be more comparable because different companies cost their inventories in the same manner.
• B)Can be determined with great precision so that inventories are valued with complete accuracy.
• C)Cause a lower net income,resulting in lower income taxes.
• D)Focus attention on trouble spots and facilitate prompt corrective action.

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Definitions:

Exocytosis

A cellular process in which substances are exported out of a cell through the fusion of vesicles with the plasma membrane.

Pathophysiology

The study of how disease processes affect the function of the body, often combining the knowledge of pathology and physiology.

Medial

Pertaining to the middle or midline.

Lateral

Pertaining to the side, often used to describe the position of body parts relative to each other.