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Question(s) / Instruction(s):

Which of the following conditions normally would NOT indicate that standard costs should be revised?

a. The engineering department has revised product specifications in responding to customer suggestions.

b. The company has signed a new union contract that increases the factory wages on average by $2.00 an hour.

c. Actual costs differed from standard costs for the preceding week.

d. The world price of raw materials increased.

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