Which of the Following Statements Relating to Standard Costs Is

question 11

Multiple Choice

Which of the following statements relating to standard costs is incorrect?

• A) They are predetermined costs.
• B) The approach is not suitable for a service business.
• C) An unfavourable variance occurs when actual costs exceed standard costs.
• D) They serve as benchmarks against which actual performance can be evaluated.

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Definitions:

Standardization

The process in which a test is administered to a large group of people whose performance then serves as a standard or norm against which any individual’s score can be measured.

Idiographic Information

Personalized or unique data specific to an individual's case, often used in the study of personality and individual differences.

Technical Name

The specific and often more complex term used by professionals to refer to a concept, object, or phenomenon.

Predictive Validity

The ability of a test or other assessment tool to predict future characteristics or behaviors.