Normalisation Is Used to Remove the Effects of Factors Outside

question 75

Multiple Choice

Normalisation is used to remove the effects of factors outside the control of the organisation in:

• A) competitive benchmarking.
• B) industry benchmarking.
• C) process benchmarking.
• D) external benchmarking.

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Definitions:

Period Costs

Costs that are expensed in the period in which they are incurred, not directly tied to the production process.

Factory Overhead Incurred

The total costs associated with the operation of a factory that are not directly tied to a specific product, including utilities, maintenance, and management salaries.

Statement of Cost

A financial report that summarizes the costs associated with producing goods or services, including materials, labor, and overhead.

Finished Goods

Finished goods are products that have completed the manufacturing process but have not yet been sold or distributed to end users.