The Purpose of Standard Costing Is To

question 67

Multiple Choice

The purpose of standard costing is to:

• A)Determine optimal production level for a given period.
• B)Eliminate the need for subjective decisions by management.
• C)Control costs and promote efficiency.
• D)Budget costs with improved accuracy.

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Definitions:

Luddites

Originally, a group of early 19th-century English workers who destroyed machinery, especially in cotton and woolen mills, that they believed threatened their jobs.

Mode of Production

An economic concept referring to the combination of the means of labor (tools, factories, land, etc.) and the method of labor (how work is organized and carried out) to produce goods and services.

Craftsmen

Skilled individuals who create items by hand, often with traditional techniques, in various trades such as carpentry, blacksmithing, and pottery.

Prussia

A historically significant state in central Europe, known for its military efficiency and unification role in the creation of the German Empire in the late 19th century.