Which of the following statements is true about estimated costs and standard costs?
A. Standard costs are based on scientific analysis and engineering studies, while estimated costs are based on a historical basis
B. Standard cost emphasis is on 'what cost will be', while estimated cost emphasis is on 'what cost should be'
C. Standard costs are frequently revised compared to the estimated cost
D. Estimated costs are stable than standard costs
Answer: Option A
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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