{"id":56439,"date":"2024-04-16T00:44:41","date_gmt":"2024-04-16T00:44:41","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=56439"},"modified":"2024-04-16T00:44:41","modified_gmt":"2024-04-16T00:44:41","slug":"in-the-context-of-standard-costing-basic-standard-is-established-for","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-the-context-of-standard-costing-basic-standard-is-established-for\/","title":{"rendered":"In the context of standard costing; basic standard is established for"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9722c18ca66\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    short period                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    current period                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    indefinite period                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    predefined period                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>A. short period<\/strong><\/p>\n<p>A standard cost is a predetermined cost that is used to control costs and evaluate performance. It is established for a short period of time, typically one year. This is because standard costs need <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n   <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>                  <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> to be updated regularly to reflect changes in prices, technology, and other factors.<\/p>\n<p>Option B is incorrect because the current period is too short a time frame to establish a reliable standard cost. Option C is incorrect because standard costs are not established for an indefinite period of time. Option D is incorrect because a predefined period is not a specific enough time frame to establish a standard cost.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<ul>\n<li><strong>Option A: short period<\/strong><\/li>\n<\/ul>\n<p>A standard cost is a predetermined cost that is used to control costs and evaluate performance. It is established for a short period of time, typically one year. This is because standard costs need to be updated regularly to reflect changes in prices, technology, and other factors.<\/p>\n<ul>\n<li><strong>Option B: current period<\/strong><\/li>\n<\/ul>\n<p>The current period is too short a time frame to establish a reliable standard cost. This is because costs can fluctuate significantly from one period to the next. For example, the price of raw materials may increase or decrease significantly over the course of a year. As a result, a standard cost that is established at the beginning of the year may not be accurate by the end of the year.<\/p>\n<ul>\n<li><strong>Option C: indefinite period<\/strong><\/li>\n<\/ul>\n<p>Standard costs are not established for an indefinite period of time. This is because standard costs need to be updated regularly to reflect changes in prices, technology, and other factors. For example, the price of raw materials may increase or decrease significantly over time. As a result, a standard cost that is established one year may not be accurate five years later.<\/p>\n<ul>\n<li><strong>Option D: predefined period<\/strong><\/li>\n<\/ul>\n<p>A predefined period is not a specific enough time frame to establish a standard cost. This is because standard costs need to be updated regularly to reflect changes in prices, technology, and other factors. For example, the price of raw materials may increase or decrease significantly over the course of a month. As a result, a standard cost that is established at the beginning of the month may not be accurate by the end of the month.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In the context of standard costing; basic standard is established for<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-the-context-of-standard-costing-basic-standard-is-established-for\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In the context of standard costing; 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