D can exist because establishing budgeted costs

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D. Can exist because establishing budgeted costs involves employee participation and standard costs do not. standard costs do not. 7. Normal Normal costing an costing and standard d standard costing costing differ i differ in n that that A. the two sy the two systems can stems can show different overh show different overhead budget variances. ead budget variances. B. only normal only normal costing can costing can be used wi be used with absorption th absorption costing. costing. C. C. the two system the two systems show different vol s show different volume variances if standard hours do n ume variances if standard hours do not equal actual ot equal actual hours. D. D. normal costing i normal costing is less appropri s less appropriate for m ate for multiproduct firms ultiproduct firms 8. When standard costs When standard costs are used i are used in a process-costing sys n a process-costing system, how, if tem, how, if at all, are at all, are equivalent units equivalent units of production (EUP) involved or used in the co of production (EUP) involved or used in the cost report at standard? st report at standard? A. Equivalent uni Equivalent units are ts are not used. not used. B. Equivalent uni Equivalent units are ts are computed usi computed using a ng a special special approach. approach. C. The actual equiv The actual equivalent units are m alent units are multiplied by the ultiplied by the standard cost per standard cost per unit. unit. D. The standard equiv The standard equivalent units are m alent units are multiplied by the actual ultiplied by the actual cost per uni cost per unit. t. 9. The type of The type of standard that is i standard that is intended to represent ch ntended to represent challenging yet attainable allenging yet attainable results is results is: A. theoretical theoretical standard standard D. normal normal standard standard B. flexible flexible budget budget standard standard E. expected expected actual actual standard standard C. controllable controllable cost cost standard standard
Page 2 10. A company using very tight standards in a standard cost system should expect that A. Most variances will be unfavorableB. No incentive bonus will be paidC. Costs will be controlled better than if lower standards were usedD. Employees will be strongly motivated to attain the standard

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