Which of the Following Are Methods for Setting Standards

question 55

Multiple Choice

Which of the following are methods for setting standards?

• A) Historical data analysis and cost analysis
• B) Task analysis and analysis of historical data
• C) Budgetary analysis and data analysis
• D) Cost analysis and budgetary analysis

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Definitions:

Operating Activities

These activities generate cash inflows and outflows related to revenue and expense transactions that affect net income.

Operating Activity

Tasks and transactions related to the core business functions of an organization, such as selling products or services and manufacturing.

Cash Received

The total amount of cash a company collects from its various sources, including operations, financing, and investing activities, during a period.

Indirect Method

A method of computing the net cash provided by operating activities that starts with net income and adjusts it to a cash basis.