Asked by Hailey Gallant on May 20, 2024
Verified
Variances from standard costs are usually not included in reports to stockholders.
Standard Costs
Predetermined or estimated costs used for planning and control purposes in budgeting and cost management.
Stockholders
The owners of a corporation.
- Master the basic concepts of standard costs and their role in the budgeting process and the assessment of variances.
- Examine the effects of benchmarks in nonmanufacturing environments and their significance across different business contexts.
Verified Answer
NA
NUR AMIZA SYAZWINA BINTI AZMI / UPMMay 26, 2024
Final Answer :
True
Explanation :
Variance from standard costs are typically used for internal management purposes and are not usually included in the financial reports distributed to stockholders, which are prepared according to Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).
Learning Objectives
- Master the basic concepts of standard costs and their role in the budgeting process and the assessment of variances.
- Examine the effects of benchmarks in nonmanufacturing environments and their significance across different business contexts.
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