05 x05 Standard Costing & Variance Analysis - Standard Costs and Variance Analysis STANDARD COSTS AND VARIANCE ANALYSIS D Practical capacity

05 x05 Standard Costing & Variance Analysis - Standard...

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Standard Costs and Variance AnalysisSTANDARD COSTS AND VARIANCE ANALYSISTHEORIES:Standard cost system1.A primary purpose of using a standard cost system isA.to make things easier for managers in the production facility.B.to provide a distinct measure of cost control.C.to minimize the cost per unit of production.D.b and c are correct2.Which one of the following statements is true concerning standard costs?3.Which of the following is a purpose of standard costing?4.When evaluating the operating performance management sometimes uses thedifference between expected and actual performance. This refers to:Standard setting5.The best basis upon which cost standards should be set to measurecontrollable production inefficiencies isD.Practical capacity6.A company employing very tight (high) standards in a standard cost systemshould expect that7.To measure controllable production inefficiencies, which of the following isthe best basis for a company to use in establishing the standard hours allowedfor the output of one unit of product?

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