Usage of more resources to develop fundamental standards is classified as ____________?
Correct answer: B. potential management response
- A. potential budget response
- B. potential management response
- C. potential price response
- D. potential cost responseAccounting & Auditing
Explanation
Fundamental or ideal standards require extensive analysis and resources to establish realistic benchmarks. The resulting use of additional resources is therefore classified as a potential management response.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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More Cost Accounting questions
If fixed overhead allocated for actual output units is $25000 and the production volume variance is $9000, then budgeted fixed overhead will be _____________?
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If the flexible budget amount is $26000 and fixed overhead flexible budget variance is $12500, then actual incurred cost would be ____________?
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