The use of realistic predetermined unit costs to facilitate product costing,cost control,cost flow,and inventory valuation is a description of the
A)flexible budget concept.
B)budgetary control concept.
C)capacity level concept.
D)standard cost accounting concept.

Question

Quizplus · Accepted Answer

The use of realistic predetermined unit costs is a core component of the standard cost accounting concept, which involves setting expected costs for inputs and processes, and using those standards for product costing, cost control, cost flow, and inventory valuation. Flexible budgeting involves adjusting budgets in response to changes in actual activity levels, budgetary control entails comparing actual costs to budgeted costs, and the capacity level concept relates to the point at which production capacity is fully utilized.

The Use of Realistic Predetermined Unit Costs to Facilitate Product