Which of the Following Is the Performance Standard Usually Considered

question 36

Multiple Choice

Which of the following is the performance standard usually considered best in setting standard costs?

• A) Profitable
• B) Optimal
• C) Attainable
• D) Historical

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Definitions:

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense over its useful life.

Commercial Substance

A concept in accounting that indicates a transaction has significantly changed the economic conditions or the cash flows of an entity.

Units-Of-Production

A method of depreciation that distributes an asset's cost across its lifespan according to the quantity of units manufactured.

Double-Declining-Balance

An accelerated method of depreciation that doubles the rate at which an asset's book value decreases, resulting in higher depreciation expenses in the early years.