Standard Costs

question 8

Multiple Choice

Standard costs:

• A)May be used in job order cost systems but not in process cost accounting systems.
• B)Should be revised upward when actual costs are higher than expected because of waste and inefficiency.
• C)Are the same for all companies in a given industry.
• D)Are the costs that should be incurred to produce a product under normal conditions.

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Definitions:

Biological Father

The male parent who has contributed the genetic material to a child.

Born out of Wedlock

Refers to a child born to parents who are not legally married to each other at the time of the child's birth.

Snob Effect

The phenomenon where the demand for a certain good increases as it becomes more exclusive or prestigious, independent of its price.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price or income.